GOVERNMENT 

OF 

THE  CANAL  ZONE 


GEORGE  W.  GOETHALS 


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UNIVERSITY 

OF  CALIFORNIA 

LOS  ANGELES 


SCHOOL  OF  LAW 
LIBRARY 


GOVERNMENT  OF  THE  CANAL  ZONE 

THE  STAFFORD  LITTLE  LECTURES 
FOR  1915 


Former    Administration    Building,    Ancon.       Now 
Court  Building  and  general  office  for  Army 


GOVERNMENT 
OF  THE  CANAL  ZONE 


BY 

GEORGE  W.  GOETHALS,  U.  S.  A. 

Governor  of  the  Canal  Zone 


PRINCETON  UNIVERSITY  PRESS 
PRINCETON 

LONDON:  HUMPHREY  MILFORD 

OXFORD  UNIVERSITY  PRESS 

1915 


T 


Copyright,  1915,  by 
PRINCETON  UNIVERSITY  PRESS 

Published  April,  1915 


<O 


I 


GOVERNMENT  OF  THE  CANAL 
ZONE 


The  building  of  the  Panama  Canal  has 
been  written  and  talked  about  as  one  of 
the  great  feats  of  engineering,  and  the 
sanitary  work  by  which  yellow  fever  was 
banished  from  the  Isthmus  has  received 
equal  recognition.  Little  or  nothing  has 
been  said  or  heard  of  the  other  coordinate 
branches,  such  as  the  housing  and  feeding 
of  the  force ;  the  purchasing,  receiving  and 
issuing  of  construction  supplies;  the  re- 
cruiting of  labor,  both  skilled  and  un- 
skilled ;  or  the  controlling  of  the  Zone  and 
preserving  order  within  its  limits ;  yet  each 
was  very  necessary  and  important  to  the 
1 


2  GOVERNMENT  OF 

attainment  of  the  end,  for  the  failure  of 
any  one  would  have  crippled  and  delayed 
the  completion  of  the  canal. 

The  construction  of  the  canal  involved 
the  solution  of  no  new  engineering  prob- 
lems— simply  the  application  of  known 
principles  and  methods  which  experience 
had  shown  would  give  satisfactory  results, 
for  the  very  magnitude  of  the  work  pre- 
cluded trying  out  anything  new  or  exper- 
imental. The  task  was  a  formidable  one, 
therefore,  because  of  its  size,  rather  than 
because  of  engineering  difficulties  that 
were  overcome.  So,  too,  in  regard  to  sani- 
tation. With  Sir  Ronald  Ross'  discovery 
of  the  cause  of  malaria,  which  led  him  to 
adopt  means  for  its  reduction  and  eradica- 
tion in  Egypt  and  India,  and  with  Reed, 
Lazear  and  Carroll  proving  the  theory 
that  yellow  fever  is  transmitted  by  the 
mosquito,  and  formulating  rules  which 
freed  Cuba  from  the  ravages  of  that  dread 


THE  CANAL  ZONE  3 

disease,  there  remained  but  the  application 
of  the  methods  followed  elsewhere  to  se- 
cure similar  results  on  the  Isthmus  with 
respect  to  these  two  diseases.  The  work 
in  Panama  developed  nothing  new.  The 
housing  and  feeding  of  the  force  presented 
old  problems  in  a  new  form,  made  more 
difficult,  however,  because  of  the  great 
numbers  employed  and  the  distance  from 
the  home  markets ;  similarly  with  the  sup- 
ply of  materials  so  that  construction  might 
proceed  unhampered.  The  reputation  of 
Panama  as  a  pesthole  made  the  recruiting 
of  labor  a  difficult  undertaking,  and  the 
difficulty  was  increased  by  opposition 
through  edicts  and  legislation  on  the  part 
of  various  Governments  both  in  Europe 
and  the  West  Indies.  But  a  novel  prob- 
lem in  government  was  presented  by  the 
necessity  of  ruling  and  preserving  order 
within  the  Canal  Zone.  While  some  ex- 
perience had  been  gained  in  the  insular 


4  GOVERNMENT  OF 

possessions,  a  new  situation  existed  which 
had  to  be  solved,  and  after  various  changes 
there  was  evolved  a  form  of  government 
which  was  unique,  differing  from  any  es- 
tablished methods  of  administration. 

About  a  year  ago  the  press  announced 
that  a  civil  government  was  to  be  given  to 
the  Canal  Zone,  from  which  it  was  as- 
sumed that  something  different  from  what 
had  existed  previously  was  to  be  estab- 
lished, and  when  an  army  officer  was 
appointed  Governor  it  seemed  to  be  con- 
sidered a  cause  for  regret  that  the  military 
was  selected  in  lieu  of  the  civil  rule;  con- 
sequently, a  confusion  of  ideas  followed — 
if  there  were  any  ideas  on  the  subject — as 
to  what  is  the  actual  status  of  affairs.  An 
attempt  will  be  made  to  clear  up  the  situa- 
tion by  outlining  the  course  of  civil  admin- 
istration of  the  Zone  through  its  various 
changes  to  the  form  of  government  that 
finally  resulted  and  which  was  continued 


THE  CANAL  ZONE  5 

till  the  Panama  Canal  Act  was  made  ap- 
plicable, together  with  the  reasons  which 
led  to  the  adoption  by  Congress  of  the  es- 
tablishment that  now  exists. 

The  question  of  an  Isthmian  canal  had 
been  under  consideration  for  years,  and 
while  an  American  company  had  begun 
work  on  a  canal  by  the  Nicaraguan  route, 
a  French  company  was  the  first  to  begin 
at  Panama  the  construction  of  a  trans- 
Isthmian  canal  on  a  scale  that  promised 
and  so  far  as  concerns  the  work  on  the 
Isthmus  merited  success.  Within  ten 
years  after  the  organization  of  the  French 
company  it  was  forced  into  liquidation. 
This  was  followed  by  the  formation  of  a 
new  company,  but  it  was  difficult  to  obtain 
money,  and  the  work  carried  on  by  it 
gradually  narrowed  down  to  only  such 
as  was  necessary  to  hold  the  concession 
that  had  been  granted  by  Colombia. 

In  the  nineties  the  United  States  began 


6  GOVERNMENT  OF 

to  take  a  more  active  interest  in  an  Isth- 
mian canal  and  the  Congress  authorized  the 
employment  of  engineers  to  investigate 
first  the  Nicaraguan  route  and  subse- 
quently both  this  and  the  Panama  route. 
In  1901  the  engineers  reported  in  favor  of 
the  Panama  route  provided  the  rights  and 
properties  of  the  New  Panama  Canal 
Company  could  be  purchased  for  the  sum 
of  $40,000,000.  Shortly  thereafter,  Con- 
gress, by  the  act  approved  June  28,  1902, 
commonly  known  as  the  Spooner  Act, 
authorized  the  President  to  acquire  from 
the  Republic  of  Colombia  perpetual  con- 
trol of  a  strip  of  land  across  the  Isthmus 
of  Panama  not  less  than  six  miles  wide, 
for  the  purpose  of  constructing,  maintain- 
ing, operating,  and  protecting  a  canal, 
which  was  to  be  of  sufficient  depth  and  ca- 
pacity to  afford  easy  passage  for  ships  of 
the  greatest  tonnage  and  draft  then  in  use, 
or  that  might  reasonably  be  anticipated, 


THE  CANAL  ZONE  7 

provided  the  rights  and  property  of  the 
New  Panama  Canal  Company  could  be 
purchased  for  $40,000,000.  The  control 
of  the  strip  was  to  include  the  jurisdiction 
of  the  land  so  transferred  as  well  as  of  the 
terminal  ports,  and  the  authority  to  make 
such  police  and  sanitary  rules  and  regula- 
tions as  might  be  necessary  to  preserve 
order  and  public  health.  In  addition,  the 
right  was  to  be  secured  to  maintain  and 
operate  the  Panama  Railroad,  which  had 
been  constructed  by  American  capital  be- 
tween 1850  and  1855  under  a  concession 
from  Colombia,  provided  the  United 
States  obtained  a  majority  of  the  stock. 
The  same  act  stipulated  that  in  case 
satisfactory  arrangements  could  not  be 
made  with  Colombia  or  the  New  Panama 
Canal  Company  within  a  reasonable  time 
and  at  a  reasonable  cost,  the  President  was 
to  enter  into  negotiations  with  Costa  Rica 
and  Nicaragua  for  the  acquisition  of  the 


8  GOVERNMENT  OF 

necessary  territory  to  build  a  canal  by  the 
Nicaraguan  route.  In  either  case,  the 
President  was  to  construct  the  canal  utiliz- 
ing for  this  purpose  the  services  of  the 
Isthmian  Canal  Commission,  a  body  cre- 
ated by  the  act,  to  consist  of  at  least  seven 
members,  at  least  four  of  whom  were  to 
be  engineers,  and  of  these  four  one  was 
to  be  an  officer  of  the  army  and  one  an 
officer  of  the  navy.  The  Commissioners 
were  to  be  appointed  by  the  President 
with  the  advice  and  consent  of  the  Senate. 
In  compliance  with  this  enactment,  as 
the  New  Panama  Canal  Company  was  a 
willing  seller  of  its  rights  and  properties, 
negotiations  were  undertaken  to  secure 
the  strip  of  land  with  the  necessary  control 
from  the  Republic  of  Colombia,  and  a 
treaty  for  the  purpose  was  prepared  and 
agreed  to  by  the  representatives  of  the 
two  Powers,  but  it  failed  of  ratification  by 
the  legislative  body  of  Colombia. 


THE  CANAL  ZONE  9 

Immediately  following  this  action  on 
the  part  of  the  Colombian  Government 
the  Province  of  Panama  seceded,  its  inde- 
pendence was  recognized  by  the  United 
States,  and  negotiations  were  entered  into 
with  the  new  republic  for  the  acquisition 
of  the  strip  needed  for  the  canal,  which 
culminated  in  the  treaty  of  November  18, 
1903.  The  ratifications  of  this  treaty  were 
exchanged  at  Washington  on  February 
26,  1904.  By  its  terms,  the  United  States 
was  granted  in  perpetuity  the  use,  occu- 
pation, and  control  of  a  strip  or  zone  of 
land  ten  miles  wide,  five  miles  on  either 
side  of  the  center  line  of  the  canal  to  be 
constructed,  extending  across  the  Isthmus 
and  three  marine  miles  from  the  mean  low 
water  mark  into  both  the  Caribbean  Sea 
and  the  Pacific  Ocean.  The  cities  of  Colon 
and  Panama  and  their  adjacent  harbors 
were  specifically  excluded  from  the  grant. 
In  addition  such  other  lands  and  waters 


10  GOVERNMENT  OF 

outside  the  strip  described  as  might  be 
necessary  for  the  construction,  mainte- 
nance, operation,  or  protection  of  the  canal 
or  for  any  of  its  works  were  transferred 
to  the  United  States,  together  with  all 
islands  within  the  limits  of  the  Zone  de- 
scribed, as  well  as  a  group  of  small  islands, 
four  in  number,  in  the  Pacific.  The  trans- 
fer of  sovereignty  from  the  Republic  of 
Colombia  to  the  Republic  of  Panama 
vested  in  the  latter  all  rights  which  the 
former  held  in  the  Panama  Railroad  Com- 
pany, and  these  rights  were  transferred  to 
the  United  States  by  a  specific  provision 
in  the  treaty. 

In  this  way  the  United  States  obtained 
control  of  the  Canal  Zone  and  of  the 
Panama  Railroad.  With  this  control,  by 
the  terms  of  the  treaty,  the  jurisdiction 
over  a  number  of  settlements  scattered 
along  the  line  of  the  railroad,  the  popula- 
tion of  which  was  largely  Panamanian, 


THE  CANAL  ZONE  11 

was  transferred  to  the  United  States  au- 
thorities. Under  the  Spooner  Act  the 
President  was  authorized,  after  the  acqui- 
sition of  the  territory,  to  establish  judicial 
tribunals  in  order  to  enforce  the  rules  and 
regulations  which  he  might  deem  proper 
and  necessary  to  preserve  order  and  public 
health.  While  this  authority  was  suffi- 
cient to  permit  the  establishment  of  such 
a  form  of  government  as  the  President 
might  determine,  the  act  of  April  28, 
1904,  specifically  provided  for  the  govern- 
ment of  the  Canal  Zone.  This  law  stipu- 
lated that  until  the  expiration  of  the  Fifty- 
eighth  Congress  (March  4,  1905),  unless 
provision  for  a  temporary  Government  be 
sooner  made  by  Congress,  all  military, 
civil,  and  judicial  powers,  as  well  as  the 
power  to  make  all  rules  and  regulations 
necessary  for  the  government  of  the  Canal 
Zone,  and  all  the  rights,  powers,  and  au- 
thority granted  by  the  terms  of  the  treaty 


12  GOVERNMENT  OF 

to  the  United  States,  were  to  be  vested  in 
such  person  or  persons,  and  exercised  in 
such  manner,  as  the  President  might  di- 
rect for  the  government  of  the  Zone  and 
for  maintaining  and  protecting  the  inhabi- 
tants thereof  in  the  free  enjoyment  of 
their  liberty,  property,  and  religion. 

On  March  8,  1904,  the  President  ap- 
pointed and  organized  the  Isthmian  Canal 
Commission.  The  property  of  the  New 
Panama  Canal  Company  was  transferred 
to  the  United  States  on  May  4,  1904.  By 
letter  of  May  9,  1904,  the  President 
placed  the  canal,  its  construction,  and  all 
work  incident  thereto,  under  the  supervi- 
sion of  the  Secretary  of  War,  and  vested 
in  the  Isthmian  Canal  Commission  all  the 
governmental  power  in  and  over  the  Canal 
Zone  by  virtue  of  the  authority  given  him 
by  the  acts  of  June  28,  1902,  and  April 
28,  1904.  Among  the  duties  prescribed 
for  the  Isthmian  Canal  Commission  he  in- 


THE  CANAL  ZONE  13 

eluded  the  authority  to  "make  all  needful 
rules  and  regulations  for  the  government 
of  the  Zone,  and  for  the  correct  adminis- 
tration of  the  military,  civil,  and  judicial 
affairs  of  its  possessions  until  the  close  of 
the  Fifty-eighth  Congress."  The  instruc- 
tions which  the  President  gave  to  the  Com- 
mission relative  to  the  government  of  the 
Zone  contained  the  following: 

"The  inhabitants  of  the  Canal  Zone  are 
entitled  to  security  in  their  persons,  prop- 
erty, and  religion,  and  in  all  their  private 
rights  and  relations.  They  should  be  so 
informed  by  public  announcement.  The 
people  should  be  disturbed  as  little  as  pos- 
sible in  their  customs  and  avocations  that 
are  in  harmony  with  principles  of  well  or- 
dered and  decent  living.  .  .  .  The  laws  of 
the  land,  with  which  the  inhabitants  are 
familiar,  and  which  were  in  force  on  Feb- 
ruary 26,  1904,  will  continue  in  force  in 
the  Canal  Zone  and  in  other  places  on  the 
Isthmus  over  which  the  United  States  has 
jurisdiction  until  altered  or  annulled  .  .  . 
but  there  are  certain  great  principles  pf 


14  GOVERNMENT  OF 

government  which  have  been  made  the 
basis  of  an  existence  as  a  nation  which  we 
deem  essential  to  the  rule  of  law  and  the 
maintenance  of  order,  and  which  shall 
have  force  in  said  Zone.  The  principles 
referred  to  may  be  generally  stated  as 
follows : 

"That  no  person  shall  be  deprived  of 
life,  liberty,  or  property  without  due  pro- 
cess of  law ;  that  private  property  shall  not 
be  taken  for  public  use  without  just  com- 
pensation; that  in  all  criminal  prosecu- 
tions the  accused  shall  enjoy  the  right  of 
a  speedy  and  public  trial,  to  be  informed 
of  the  nature  and  cause  of  the  accusation, 
to  be  confronted  with  the  witnesses 
against  him,  to  have  compulsory  process 
for  obtaining  witnesses  in  his  favor,  and 
to  have  the  assistance  of  counsel  for  his 
defense;  that  excessive  bail  shall  not  be 
required  nor  excessive  fines  imposed,  nor 
cruel  or  unusual  punishment  inflicted; 
that  no  person  shall  be  put  twice  in  jeop- 
ardy for  the  same  offense,  or  be  compelled 
in  any  criminal  case  to  be  a  witness  against 
himself ;  that  the  right  to  be  secure  against 
unreasonable  searches  and  seizures  shall 


THE  CANAL  ZONE  15 

not  be  violated;  that  neither  slavery  nor 
involuntary  servitude  shall  exist  except  as 
a  punishment  for  crime ;  that  no  bill  of  at- 
tainder or  ex  post  facto  law  shall  be 
passed ;  that  no  law  shall  be  passed  abridg- 
ing the  freedom  of  speech  or  of  the  press, 
or  of  the  rights  of  the  people  to  peaceably 
assemble  and  petition  the  Government  for 
a  redress  of  grievances;  that  no  law  shall 
be  made  respecting  the  establishment  of 
religion  or  prohibiting  the  free  exercise 
thereof." 

The  effect  of  the  foregoing  was  the  es- 
tablishment of  a  bill  of  rights,  and  the 
power  of  the  Commission  to  that  extent 
was  restricted,  yet  the  following  proviso 
was  added: 

"That  the  Commission  shall  have  power 
to  exclude  from  time  to  time  from  the 
Canal  Zone  and  other  places  on  the  Isth- 
mus, over  which  the  United  States  has 
jurisdiction,  persons  of  the  following 
classes  who  were  not  actually  domiciled 
within  the  Zone  on  the  26th  day  of  Febru- 
ary, 1904,  viz.:  Idiots,  the  insane,  epilep- 
tics, paupers,  criminals,  professional  beg- 


16  GOVERNMENT  OF 

gars,  persons  afflicted  with  loathsome  or 
dangerous  contagious  diseases;  those  who 
have  been  convicted  of  felony,  anarchists, 
those  whose  purpose  it  is  to  incite  insur- 
rection and  others  whose  presence  it  is  be- 
lieved by  the  Commission  would  tend  to 
create  public  disorder,  endanger  the  pub- 
lic health,  or  in  any  manner  impede  the 
prosecution  of  the  work  of  opening  the 
canal;  and  may  cause  any  and  all  such 
newly-arrived  persons  or  those  alien  to  the 
Zone  to  be  expelled  and  deported  from 
the  territory  controlled  by  the  United 
States,  and  the  Commission  may  defray 
from  the  canal  appropriation  the  cost  of 
such  deportation  as  necessary  expenses  of 
the  sanitation,  the  police  protection  of  the 
canal  route,  and  the  preservation  of  good 
order  among  the  inhabitants." 

In  other  words,  while  certain  rights 
were  secured  to  the  individual,  the  latter 
was  not  protected  against  invasion  by  the 
Commission,  to  which  was  given  a  power 
that  could  not  be  exercised  by  any  judicial 
or  executive  tribunal  in  the  United  States, 


THE  CANAL  ZONE  17 

except  within  territory  placed  under  mili- 
tary law.  In  a  community  where  the  in- 
habitants were  liable  to  constant  change 
there  could  exist  no  balance  wheel  in  the 
form  of  public  sentiment  common  to  all 
settled  communities,  and  as  the  work 
might  be  seriously  hampered  by  the  agita- 
tions of  one  or  more  persons,  such  a  power 
was  necessary  for  the  good  of  the  whole. 
Authority  was  given  to  the  Commission 
to  legislate  on  all  subjects  not  inconsistent 
with  the  laws  and  treaties  applicable  to  the 
Zone,  such  legislative  power  also  to: 

'  .  .  .  include  the  power  to  raise  and 
appropriate  revenues  in  said  Zone ;  and  all 
taxes,  judicial  fines,  customs  duties  and 
other  revenues  levied  and  collected  in  said 
Zone  by  or  under  the  authority  of  said 
Commission  shall  be  retained,  accounted 
for,  and  disbursed  by  said  Commission  for 
its  proper  purposes.  The  members  of 
said  Commission  to  the  number  of  four  or 
more  shall  constitute  a  legislative  quorum 
and  all  rules  and  regulations  passed  and 


18  GOVERNMENT  OF 

enacted  by  said  Commission  shall  have  set 
forth  as  a  caption  that  they  are  enacted 
by  the  Isthmian  Canal  Commission  'By 
authority  of  the  President  of  the  United 
States'." 

A  member  of  the  Commission,  Major- 
General  George  W.  Davis,  U.  S.  A.,  who 
had  had  previous  experience  in  Porto  Rico 
and  in  the  Philippine  Islands,  was  ap- 
pointed Governor  of  the  Canal  Zone.  It 
was  made  his  duty  to  take  and  maintain 
possession  of  the  territory  including  the 
public  land  together  with  the  property, 
real  and  movable,  on  the  Isthmus  of  Pan- 
ama that  had  been  acquired  from  the  Re- 
public of  Panama,  and  to  see  that  the  laws 
were  faithfully  executed.  The  Governor 
was  vested  with  the  power  to  grant  re- 
prieves and  pardons  for  offenses  against 
the  rules,  regulations  and  laws  in  force  or 
that  might  be  enacted  by  the  commission ; 
to  establish  an  adequate  police  force  and, 
in  case  of  an  emergency,  to  call  upon  any 


THE  CANAL  ZONE  19 

available  military  or  naval  force  of  the 
United  States  for  assistance  which  the 
military  commander  was  required  to 
render. 

The  Governor  of  the  Canal  Zone 
reached  the  Isthmus  on  May  17, 1904,  and 
two  days  later  announced  to  the  inhabi- 
tants of  the  land  ceded  by  the  Republic 
of  Panama  that  the  territory  had  been  oc- 
cupied by  the  United  States,  and  that  the 
temporary  government  over  it  and  its  in- 
habitants had  been  assumed  by  him  acting 
for  and  in  the  name  of  the  President  of 
the  United  States.  The  people  were  also 
informed  that  the  laws  of  the  land  would 
be  continued  in  force  except  where  they 
were  found  to  be  in  conflict  with  certain 
fundamental  principles  of  government 
that  are  embodied  in  the  Constitution  of 
the  United  States  whereby  specified  in- 
dividual rights  are  guaranteed.  Alcaldes 
and  other  officials  already  in  the  per- 


20  GOVERNMENT  OF 

f  ormance  of  official  duties  were  instructed 
to  continue  in  the  discharge  of  their 
functions. 

The  treaty  of  November,  1903,  while 
stipulating  certain  limits  to  the  extent  of 
territory  transferred  to  the  United  States, 
failed  to  fix  definitely  the  boundaries  of 
the  cities  of  Panama  and  Colon  with  their 
adjacent  harbors,  and  in  order  to  avoid 
conflict  of  jurisdiction,  the  Governor  un- 
dertook to  remedy  this  defect,  with  the 
result  that  on  June  15, 1904,  a  provisional 
agreement  was  made  with  the  authorities 
of  the  Republic  of  Panama  setting  forth 
the  boundaries  between  the  two  Powers. 
Subsequently  Cristobal,  on  the  north,  and 
La  Boca  (called  the  port  of  Ancon),  on 
the  south,  were  announced  and  established 
as  the  terminal  ports  of  the  Canal  Zone. 
Colon  and  Cristobal  are  contiguous,  a 
street  separating  one  from  the  other ;  both 
front  on  Limon  Bay,  a  small  indentation 


THE  CANAL  ZONE  21 

in  the  coast  line.  On  the  Pacific  side,  all 
shipping  from  the  north  and  south  con- 
nects with  the  Panama  Railroad  at  La 
Boca;  the  great  bulk  of  merchandise  for 
Panama  coming  by  way  of  the  Pacific  was 
and  is  landed  on  the  pier  at  this  locality. 

One  of  the  most  important  functions  of 
government  is  the  power  to  impose  taxes, 
and  this  was  one  of  the  subjects  on  which 
the  Commission  was  authorized  to  legis- 
late, but  its  authority  could  not  extend 
beyond  the  limits  of  the  Canal  Zone. 
Where  legislation  would  have  wider  scope, 
as  in  the  case  of  customs  duties,  action  by 
the  President  was  necessary.  Conse- 
quently, and  on  recommendation  of  the 
Commission,  the  President  of  the  United 
States  issued  an  order  that  the  territory 
of  the  Canal  Zone  would  be  open  to  the 
commerce  of  all  friendly  nations,  and  that 
all  articles,  goods  and  wares,  not  included 
in  the  prohibited  lists,  entering  at  the  es- 


22  GOVERNMENT  OF 

tablished  ports,  would  be  admitted  upon 
the  payment  of  such  customs  duties  and 
other  charges  as  were  in  force  at  the  time 
and  place  of  their  importation.  Duties  on 
importations  of  foreign  merchandise  into 
the  Canal  Zone  were  to  be  levied  in  con- 
formity with  the  duties  Congress  had  im- 
posed upon  such  merchandise  if  imported 
into  ports  of  the  United  States,  and  goods 
and  merchandise  entering  the  Canal  Zone 
from  ports  of  the  United  States  were  to 
be  admitted  on  the  same  terms  as  at  ports 
of  the  States  of  the  Union.  The  order 
also  directed  the  Governor  of  the  Zone 
to  make  an  agreement  with  the  Presi- 
dent of  Panama  by  which  cooperation 
would  be  secured  between  the  customs 
services  of  the  Canal  Zone  and  the  Re- 
public of  Panama,  so  as  to  prevent 
frauds  and  smuggling  and  to  protect  the 
revenue  of  both  Governments.  To  carry 
out  the  provisions  of  the  order,  a  Di- 


THE  CANAL  ZONE  23 

vision    of    Customs    and    Revenues    was 
established. 

With  the  coming  of  the  Americans  the 
merchants  of  Colon  and  Panama  feared 
that  their  business  would  be  taken  from 
them,  for  if  free  trade  were  established  be- 
tween the  Canal  Zone  and  the  United 
States,  not  only  would  everything  that 
was  needed  for  the  canal  be  admitted  free 
of  duty,  but  also  such  merchandise  as 
might  be  required  by  the  inhabitants  of  the 
Zone  who  had  been  purchasing  their  sup- 
plies from  the  dealers  in  the  terminal  cities. 
Competition  would  be  impossible,  as  the 
merchants  of  Colon  and  Panama  were 
obliged  to  pay  the  tariff  imposed  by  the 
laws  of  their  Government.  The  executive 
order  confirmed  their  fears,  and  they  pro- 
tested vehemently  against  it.  The  order 
would  affect  also  the  revenues  of  the  Re- 
public of  Panama,  consequently  its  Presi- 
dent would  not  consent  to  make  any  agree- 


24  GOVERNMENT  OF 

ment  with  the  Governor  of  the  Canal  Zone 
looking  to  the  mutual  protection  of  the  cus- 
toms, but  instead  took  up  the  matter  with 
the  Department  of  State  at  Washington. 
It  was  held  by  the  Panamanian  authori- 
ties that  the  Republic  of  Panama  had  not 
transferred  to  the  United  States  the  abso- 
lute sovereignty  of  the  territory;  that  it 
had  reserved  unto  itself  the  cities  of  Pan- 
ama and  Colon  and  their  adjacent  harbors, 
and  though  granting  to  the  United  States 
the  free  use  of  these  harbors,  it  had  not 
authorized  the  Canal  Zone  Government 
to  set  aside  a  portion  of  them — which  was 
what  had  been  done  when  the  terminal 
ports  of  the  Canal  Zone  were  established 
— and  to  exercise  jurisdiction  over  such 
portions.  Lacking  absolute  sovereignty, 
there  could  be  no  right  or  authority 
for  the  Canal  Zone  to  maintain  its  own 
fiscal  system  by  the  establishment  of 
customs  houses,  even  in  ports  removed 


THE  CANAL  ZONE  25 

from  those  of  Panama  and  Colon,  or  to 
collect  import  duties  in  any  part  of  the 
Zone.  Objection  was  also  entered  to  the 
use  by  the  Zone  post  offices  of  stamps  dif- 
fering from  those  in  use  in  the  Republic 
of  Panama ;  while  admitting  that  a  domes- 
tic mail  service  might  be  established  within 
the  limits  of  the  Zone,  the  extension  of 
such  a  service  to  include  the  forwarding 
of  mails  to  foreign  countries  (among  them 
the  United  States)  was  not  authorized,  for 
this  right  rested  with  the  Republic  of 
Panama,  otherwise  the  Republic  would  be 
deprived  of  its  postal  revenues.  Atten- 
tion also  was  called  to  the  fact  that  the 
grant  was  limited  in  that  it  was  made 
for  specific  purposes — "the  construction, 
maintenance,  operation,  sanitation  and 
protection  of  said  canal,"  and  its  scope 
could  not  be  extended  to  other  purposes. 

The  wording  of  the  treaty  is  peculiar; 
it  provides: 


26  GOVERNMENT  OF 

"Article  III.  The  Republic  of  Panama 
grants  to  the  United  States  all  the  rights, 
power,  and  authority  within  the  Zone  men- 
tioned and  described  in  Article  II  of  this 
agreement  and  within  the  limits  of  all  aux- 
iliary lands  and  waters  mentioned  and  de- 
scribed in  said  Article  II  which  the  United 
States  would  possess  and  exercise  if  it 
were  the  sovereign  of  the  territory  within 
which  said  lands  and  waters  are  located  to 
the  entire  exclusion  of  the  exercise  by  the 
Republic  of  Panama  of  any  such  sover- 
eign rights,  power,  or  authority." 

The  Secretary  of  State,  Mr.  Hay,  held 
that  an  examination  and  analysis  of  the 
treaty  clearly  showed  that  the  claims  of 
Panama  were  without  foundation.  If  the 
United  States  were  sovereign  of  the  terri- 
tory it  would  possess  the  right  to  regulate 
commerce,  establish  customs  houses,  and 
provide  postal  facilities.  If  it  be  assumed 
that  the  "rights,  power  and  authority  of 
sovereignty  in  and  over  the  Zone"  did  not 
give  absolute  sovereignty,  which  continued 


THE  CANAL  ZONE  27 

in  Panama,  there  still  remained  the  pro- 
vision by  which  the  United  States  was 
authorized  to  exercise  the  rights,  power, 
and  authority  of  sovereignty  "to  the  entire 
exclusion  of  the  exercise  by  the  Republic 
of  Panama  of  any  such  sovereign  rights, 
power,  or  authority."  So  far  as  the  limi- 
tations to  the  grants  that  were  set  up  by 
Panama  were  concerned,  Mr.  Hay  con- 
tended that  the  specific  purposes  enumer- 
ated were  merely  appropriate  words  of 
conveyance,  and  while  setting  forth  the 
objects  of  the  grant  could  not  be  consid- 
ered as  affecting  the  sovereign  rights 
specifically  accorded  to  the  United  States, 
otherwise  the  revenues  derived  from  the 
Panama  Railroad  through  its  relations 
with  commerce  as  well  as  the  receipts  from 
taxation  of  the  property  transferred  to 
the  United  States  must  revert  to  the  Re- 
public of  Panama,  which  would  result  in 
an  absurd  condition  of  affairs. 


28  GOVERNMENT  OF 

Naturally,  this  conclusion  was  not  satis- 
factory to  Panama,  and  the  claim  was  then 
advanced  that  if  the  rights  of  the  United 
States  as  set  forth  by  the  Secretary  of 
State  were  enforced  revenue  which  prop- 
erly belonged  to  Panama  would  be  lost  to 
its  treasury,  and  eventually  the  Republic 
would  be  forced  into  bankruptcy.  With 
the  view  of  ascertaining  if  some  working 
agreement  could  be  reached  by  which  the 
friction  that  existed  between  the  two  Gov- 
ernments on  the  Isthmus  might  be  elimi- 
nated the  Secretary  of  War,  Mr.  Taft, 
was  sent  to  confer  with  the  officials  of  the 
Republic  of  Panama. 

To  the  President  of  the  Republic  Mr. 
Taft  explained  his  attitude  by  announcing 
that  while  he  was  not  in  position  to  give 
up  the  rights  which  Secretary  Hay  had 
claimed  under  the  treaty,  yet  the  United 
States  had  no  desire  to  exercise  any  power 
which  would  not  be  necessary  for  the  pur- 


THE  CANAL  ZONE  £9 

pose  of  constructing,  maintaining,  operat- 
ing, sanitating,  and  protecting  the  canal. 
As  the  result  of  the  several  conferences 
that  followed,  an  agreement  was  reached 
which  was  acceptable  to  both  parties. 

It  was  arranged  that  the  executive  or- 
der fixing  the  same  tariff  duties  for  the 
Zone  as  were  applicable  to  the  United 
States  should  be  revoked,  and  it  was 
agreed  that  no  importations  at  the  termi- 
nal canal  ports  would  be  permitted  except 
as  provided  by  the  treaty,  to  which  were 
to  be  added  coal  and  fuel  oil  for  sale  to 
passing  ships.  Under  the  treaty  all  ma- 
terials and  supplies  required  to  carry  on 
the  work  were  to  be  admitted  free  of 
duties;  likewise  "provisions,  medicines, 
clothing,  supplies,  and  other  things  neces- 
sary and  convenient  for  the  officers,  em- 
ployees, workmen,  and  laborers,  in  the  ser- 
vice and  employ  of  the  United  States,  and 
for  their  families."  The  agreement  put  a 


SO  GOVERNMENT  OF 

limitation  on  the  treaty  provision  by  ex- 
cluding from  the  benefits  of  the  commis- 
saries established  by  the  Commission  all 
employees  and  workmen  who  were  natives 
of  tropical  countries.  In  this  connection, 
however,  it  was  stipulated  that  if  the  mer- 
chants of  the  Republic  of  Panama  could 
not  supply  these  laborers,  the  privilege  of 
the  commissaries  might  be  extended  to 
them,  and  this  eventually  resulted. 

In  return,  Panama  was  to  reduce  its  im- 
port tax  from  fifteen  to  ten  per  cent  and 
consular  fees  to  sixty  per  cent  of  the 
then  existing  rates.  The  postal  differences 
were  arranged  by  agreeing  that  the  Canal 
Zone  postal  service  should  purchase  all 
stamps  from  the  Republic  of  Panama, 
paying  therefor  forty  per  cent  of  their 
face  value  and  crossing  them  "Canal 
Zone,"  while  Panama  agreed  to  reduce 
the  rate  between  Panama  and  the  United 
States  to  two  cents.  Separate  ports  were 


THE  CANAL  ZONE  SI 

to  be  maintained  in  the  Canal  Zone,  but 
reciprocal  arrangements  would  be  effected 
permitting  the  use  of  the  facilities  of  the 
canal  ports  by  vessels  cleared  for  the  ad- 
jacent ports  of  Republic  of  Panama  under 
such  regulations  as  would  not  affect  the 
complete  administrative,  judicial,  and  po- 
lice jurisdiction  of  the  two  Governments 
over  their  respective  ports  and  harbors. 
Complete  and  immediate  sanitary  and 
quarantine  jurisdiction  was  to  be  secured 
to  the  Zone  authorities  over  the  harbors  of 
Colon  and  Panama.  Panama's  monetary 
system  was  to  be  put  on  a  gold  standard 
and  so  maintained,  and  the  provisional 
geographical  delimitations  of  the  cities 
and  harbors  of  Colon  and  Panama  as  ar- 
ranged between  the  authorities  of  the 
Zone  and  the  Republic  of  Panama  were  to 
remain  in  force.  Citizens  of  the  Repub- 
lic of  Panama  residing  within  the  Canal 
Zone  were  to  have  entire  freedom  of  vot- 


32  GOVERNMENT  OF 

ing  in  elections  held  in  the  Republic  at 
such  points  outside  of  the  Zone  as  might 
be  designated  by  the  authorities  of  Pan- 
ama. The  United  States  was  to  construct, 
maintain,  and  conduct,  a  hospital  either  in 
the  Canal  Zone  or  in  the  territory  of  the 
Republic,  at  its  option,  for  the  treatment 
of  the  insane  or  of  persons  afflicted  with 
leprosy,  and  the  indigent  sick,  and  to  ac- 
cept for  treatment  such  persons  of  these 
classes  as  the  Republic  might  request.  If 
the  hospital  were  located  in  the  territory 
of  Panama,  requisite  land  for  the  purpose 
was  to  be  furnished  without  cost  to  the 
United  States,  and  the  Republic  of  Pan- 
ama agreed  to  contribute  and  pay  to  the 
United  States  a  reasonable  daily  per 
capita  for  each  patient  entering  upon  re- 
quest of  the  Republic  of  Panama,  to  be 
fixed  by  the  Secretary  of  War. 

This  agreement,  known  as  the  modus 
Vivendi,  or  the  Taft  Agreement,  was  to 


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THE  CANAL  ZONE  33 

continue  in  force,  subject  to  the  action  of 
the  Fifty-eighth  Congress,  during  the  con- 
struction period  of  the  canal,  and  it  was 
expressly  stipulated  that  it  was  "not  to  be 
taken  as  a  delimitation,  definition,  restric- 
tion, or  restrictive  construction,  of  the 
rights  of  either  party  under  the  treaty 
between  the  United  States  and  the  Re- 
public of  Panama."  The  effect  of  this 
agreement  was  to  make  free  ports  of  the 
terminals  of  the  canal  with  respect  to  all 
purchases  for  the  canal  or  its  employees 
other  than  laborers  accustomed  to  the 
tropics.  On  the  other  hand,  the  inhabitants 
of  the  Zone,  in  contradistinction  to  canal 
employees,  paid  duty  to  the  Republic  of 
Panama  on  all  merchandise  imported  di- 
rect, and  no  duties  were  paid  on  articles 
passing  from  the  Republic  of  Panama  to 
the  Canal  Zone  and  vice  versa.  As  a  con- 
sequence the  Zone  revenues  were  depleted 
by  all  customs  receipts.  Again,  as  the 


34  GOVERNMENT  OF 

civil  laws  within  the  Zone  were  those  of 
Panama,  the  same  system  of  taxation  was 
made  effective,  and  this  course  of  neces- 
sity had  to  be  adopted  for  the  mutual 
benefit  and  protection  of  the  two  interests. 
The  Commission  acting  in  its  legislative 
capacity  provided  for  the  organization  of 
the  executive  branch  of  the  government, 
which  was  to  consist  of  the  Governor,  Ex- 
ecutive Secretary,  Treasurer,  Auditor,  the 
Departments  of  Public  Health,  Revenues, 
Police,  Prisons  and  Justice,  and  a  Bureau 
of  Education.  The  Department  of  Reve- 
nues consisted  of  the  Customs  Service, 
which  was  maintained  to  protect  the  in- 
terests of  the  Republic  of  Panama,  the 
Internal  Revenue  Service  and  the  Postal 
Service.  The  Department  of  Justice  com- 
prised a  Prosecuting  Attorney  and  three 
Deputy  Prosecuting  Attorneys.  The 
Chief  of  Police,  in  charge  of  the  police  and 
prisons,  was  also  marshal  for  the  Supreme 


THE  CANAL  ZONE  35 

Court  and  coroner  for  the  Canal  Zone ;  he 
was  assisted  by  details  from  the  police 
force,  who  acted  as  marshals  for  the  Cir- 
cuit Courts  and  performed  the  duties  of 
coroner  when  required  so  to  act. 

With  the  boundaries  of  the  Canal  Zone 
fixed,  the  Commission  enacted  laws  estab- 
lishing and  fixing  more  definitely  the  or- 
ganization of  the  municipalities.  The 
Canal  Zone  was  subdivided  into  five  por- 
tions for  this  purpose,  thereby  reducing 
by  one  the  number  of  municipalities  that 
had  previously  existed.  The  government 
of  each  municipality  was  administered  by 
a  Mayor,  a  Municipal  Council  of  five 
members,  a  Municipal  Secretary  and  a 
Municipal  Treasurer,  each  and  all  of 
whom  were  appointed  by  the  Governor  of 
the  Canal  Zone  subject  to  the  approval  of 
the  Commission.  The  Mayor  was  held  re- 
sponsible for  the  execution  of  the  laws,  and 
presided  at  the  meetings  of  the  Municipal 


86  GOVERNMENT  OF 

Council,  over  whose  action  he  possessed  the 
veto  power.  He  was  charged  with  the 
regulation  of  the  expenses  and  expendi- 
tures of  the  municipality  in  accordance 
with  the  budget  and  the  accounting  regu- 
lations. The  Secretary  kept  the  record  of 
the  meetings  of  the  council  and  a  civil 
register  of  births,  marriages,  and  deaths, 
with  their  dates;  certified  to  the  correct- 
ness of  all  accounts  ordered  by  the  Coun- 
cil to  be  paid  from  the  municipal  treasury, 
and  performed  such  other  duties  as  the 
Municipal  Council  might  provide  or  the 
Governor  of  the  Canal  Zone  might  direct. 
The  Municipal  Treasurer  received,  safe- 
guarded, and  disbursed  all  moneys  paid 
into  the  municipal  treasury  from  what- 
ever source.  The  Municipal  Council  en- 
acted the  necessary  ordinances  for  the 
municipality,  but  these  did  not  become 
effective  until  approved  by  the  Governor. 
It  prepared  budgets  of  receipts  and  ex- 


THE  CANAL  ZONE  37 

penditures,  imposed  taxes  within  the  limits 
prescribed  by  law,  and  made  regulations 
for  their  collection  and  disbursement; 
made  appropriations  for  lawful  and  need- 
ful municipal  expenditures,  including  the 
construction,  repair  and  maintenance  of 
buildings,  sidewalks,  streets,  highways, 
and  parks,  and  removed  obstructions  and 
encroachments  thereon;  provided  for  fire 
protection  and  water  supply;  had  charge 
of  the  establishment  of  slaughter  houses 
and  markets  and  regulated  them ;  inspect- 
ed weights  and  measures  used  by  vendors 
and  purchasers;  established  and  main- 
tained schools  and  erected  school  houses; 
established,  maintained  and  regulated 
municipal  prisons;  established  municipal 
cemeteries,  and  performed  the  various 
other  duties  that  properly  belong  to  muni- 
cipal affairs. 

An  organization  was  provided  for  a 
judiciary  and  laws  passed  for  the  exercise 


38  GOVERNMENT  OF 

of  judicial  powers  within  its  territory. 
The  judicial  power  was  vested  in  a  Su- 
preme Court,  three  Circuit  Courts  and  five 
Municipal  Courts.  The  Supreme  Court 
consisted  of  one  Chief  Justice  and  two 
Associate  Justices.  There  was  no  appeal 
from  the  decision  of  the  Supreme  Court. 
The  Canal  Zone  was  divided  into  three 
judicial  circuits,  each  presided  over  by  one 
of  the  Supreme  Court  judges.  Their 
jurisdiction  was  original  in  all  civil  cases 
in  which  the  subject  of  litigation  was  not 
capable  of  pecuniary  estimate;  all  civil 
actions  which  involved  the  title  to  or  pos- 
session of  real  property,  or  any  interest 
therein,  or  the  legality  of  any  tax,  impost 
or  assessment ;  all  cases  in  which  the  value 
of  the  property  in  controversy  amounted 
to  one  hundred  dollars  or  more ;  all  actions 
in  admiralty  and  maritime  jurisdiction, 
irrespective  of  the  value  of  the  property 
in  controversy  or  the  amount  of  the  de- 


THE  CANAL  ZONE  39 

mand;  all  matters  of  probate,  appoint- 
ment of  guardians,  trustees,  and  receivers ; 
all  actions  for  the  annulment  of  marriage ; 
all  cases  involving  the  exercise  of  eminent 
domain;  all  criminal  cases  in  which  a 
penalty  of  more  than  thirty  days  im- 
prisonment or  a  fine  exceeding  twenty-five 
dollars  might  be  imposed;  and  in  all  such 
special  cases  and  proceedings  as  were 
not  otherwise  provided  for.  Its  appellate 
jurisdiction  extended  to  all  cases  arising 
in  the  municipal  and  inferior  courts  in 
their  respective  circuits. 

A  Municipal  Court  was  provided  for 
each  of  the  municipalities  into  which  the 
Canal  Zone  was  divided.  The  jurisdic- 
tion of  the  Municipal  Courts  covered  the 
trial  of  misdemeanors  and  offenses  arising 
within  their  respective  municipalities  in 
all  cases  where  the  sentence  might  not  ex- 
ceed by  law  thirty  days  imprisonment  or 
a  fine  of  twenty-five  dollars ;  the  trial  of  all 


40  GOVERNMENT  OF 

civil  actions  properly  triable  within  the 
municipality  over  which  exclusive  juris- 
diction was  not  given  to  the  Circuit 
Courts ;  and  all  cases  in  which  the  demand, 
exclusive  of  interest,  or  the  value  of  the 
property  in  controversy,  amounted  to  less 
than  one  hundred  dollars.  The  Municipal 
Judges  were  also  given  jurisdiction  over 
actions  for  forcible  entry  into,  and  unlaw- 
ful detainer  of  real  estate,  irrespective  of 
the  amount  in  controversy.  It  was  made 
the  duty  of  the  Municipal  Judges  to  inves- 
tigate all  felonies  committed  within  their 
municipalities  and  to  cause  the  arrest  of 
the  offenders  and  act  as  examining  mag- 
istrates in  the  preliminary  examinations. 
Provision  was  made  for  the  neces- 
sary clerks  and  officers  of  the  courts. 
While  the  Chief  Justice  and  the  Associate 
Justices  of  the  Supreme  Court  were  ap- 
pointed by  the  Commission,  the  Municipal 
Judges  were  appointed  by  the  Governor. 


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THE  CANAL  ZONE  41 

The  Commission  also  formulated  and 
prescribed  a  penal  code ;  but  the  civil  code 
and  those  relating  to  commerce,  mining 
and  admiralty  were  the  corresponding 
codes  of  the  Republic  of  Panama.  To 
avoid  the  delays  incident  to  trials  in  the 
Panamanian  Courts  codes  of  civil  and 
criminal  procedure  were  adopted  for  the 
Canal  Zone. 

The  Commission  continued  to  act  as  a 
legislative  body,  modifying  laws  and  en- 
acting new  ones  to  meet  changing  condi- 
tions, until  March  4, 1905,  when  the  Fifty- 
eighth  Congress  ended  its  term  without 
providing  legislation  for  the  government 
of  the  Zone,  and  also  failing  to  continue 
the  authority  granted  to  the  President  by 
the  act  of  April  28,  1904.  Though  the 
Commission  was  deprived  thereby  of  its 
legislative  functions,  and  the  Congress  had 
failed  to  take  them  over,  the  President 
continued  to  govern  the  Canal  Zone 


42  GOVERNMENT  OF 

through  executive  orders,  which  were 
drafted  to  meet  the  various  necessities  that 
arose.  While  he  was  criticized  for  this 
procedure,  there  was  no  other  course  open 
if  the  work  was  to  be  continued.  The 
Taft  Agreement  also  brought  forth  much 
criticism,  but  Congress  was  fully  advised 
concerning  the  matter,  and  adjourned 
without  taking  further  action  than  to  pro- 
vide that  all  the  laws  affecting  imports 
and  entry  of  persons  into  the  United 
States  from  foreign  countries  should  ap- 
ply to  goods,  wares,  merchandise  and 
persons  coming  from  the  Canal  Zone. 

For  the  first  year  of  American  control 
the  organization  of  the  government  of  the 
Canal  Zone  presented  nothing  peculiar 
other  than  that  its  inhabitants  lacked  the 
right  of  franchise.  It  was  self-contained; 
the  Governor  or  executive  had  certain 
functions  independent  of  the  legislative 
branch,  the  Commission,  and  the  munici- 


THE  CANAL  ZONE  43 

palities  had  charge  of  their  own  affairs 
subject  to  the  approval  of  the  Governor. 

The  Commission  of  seven  imposed  by 
the  Spooner  Act  did  not  tend  to  secure 
harmony  and  satisfactory  results,  a  con- 
dition which  impressed  the  Secretary  of 
War,  for,  in  a  report  to  the  President, 
after  his  return  from  the  Isthmus,  he 
called  attention  to  the  cumbersome  and 
unwieldy  condition  that  resulted  from  the 
seven-headed  control,  and  advocated  such 
a  change  in  the  organization  as  would  re- 
duce this  number,  proposing  the  substitu- 
tion of  an  executive  committee  of  three, 
consisting  of  the  Chairman,  the  Governor, 
and  the  Chief  Engineer,  as  a  controlling 
body,  the  other  members  of  the  Commis- 
sion acting  as  an  advisory  committee. 
This  was  made  effective  by  an  executive 
order  dated  April  1,  1905,  which  created 
three  executive  departments,  one  of 
which  was  to  administer  and  enforce  the 


44  GOVERNMENT  OF 

laws.  All  questions,  whether  of  govern- 
ment or  construction,  were  resolved  by  the 
Executive  Committee,  consisting  of  the 
heads  of  the  three  departments.  By  this 
order  the  government  of  the  Zone  became 
one  of  executive  control.  The  Chief  En- 
gineer and  the  Governor  resided  on  the 
Isthmus,  and  the  Chairman  of  the  Com- 
mission in  Washington ;  so  that  the  action 
of  the  Committee  in  most  cases  was  the 
action  of  two,  though  all  decisions  made 
were  submitted  to  the  Chairman. 

This  continued  until  November  17, 
1906,  when  a  change  again  was  made  be- 
cause the  organization  was  not  working 
satisfactorily.  The  number  of  depart- 
ments was  increased,  and  all  of  them 
placed  under  the  direction  of  the  Chair- 
man of  the  Commission.  By  this  order 
the  administration  of  the  civil  govern- 
ment within  the  Zone  was  placed  under 
the  General  Counsel  who,  residing  in 


PQ 


THE  CANAL  ZONE  4fl 

Washington,  exercised  the  authority  for- 
merly vested  in  the  Governor  through  an 
Executive  Secretary.  As  a  consequence 
this  left  the  Chief  Engineer  the  only  mem- 
ber of  the  Commission  resident  on  the 
Isthmus,  and  during  the  absence  of  the 
Chairman  the  Chief  Engineer  was  to  act 
for  him  in  all  matters  which  could  not  be 
referred  to  Washington,  the  action  taken 
in  each  case  to  continue  in  full  force  until 
disapproved  by  the  Chairman. 

With  the  intimate  relations  existing  be- 
tween the  construction  work  and  the  civil 
government,  the  fact  that  the  head  of  the 
latter  department  was  in  Washington  ne- 
cessitating vexatious  delays  in  handling 
important  matters,  it  is  not  surprising  that 
friction  existed.  It  was  asserted  that  the 
Department  of  Government,  generally, 
regarded  the  construction  of  the  canal  as 
of  secondary  importance  and  seemed  to 
consider  that  the  main  purpose  and  object 


46  GOVERNMENT  OF 

of  the  work  on  the  Isthmus  was  to  set  up 
a  model  of  American  government  in  the 
heart  of  Central  America  as  an  object 
lesson  to  the  South  and  Central  American 
republics.  The  head  of  the  Department 
of  Construction  and  Engineering  took  the 
opposite  view,  and  felt  that  everything 
should  be  subordinated  to  the  construction 
of  the  canal,  even  the  government.  This 
sufficiently  indicated  the  lack  of  coordina- 
tion that  existed. 

By  the  resignation  of  some  of  the  per- 
sonnel of  the  Commission  early  in  1907 
another  change  was  made,  and  a  very  de- 
cided one.  While  the  organization  pre- 
scribed by  the  executive  order  of 
November  17,  1906,  continued  in  force, 
the  duties  of  the  Chairman  and  Chief  En- 
gineer were  consolidated,  and  subse- 
quently the  authority  of  the  Governor  or 
chief  executive  of  the  Canal  Zone  under 
the  existing  laws  and  executive  orders 


THE  CANAL  ZONE  4T 

was  vested  in  and  was  to  be  exercised 
by  the  Chairman  of  the  Commission.  The 
office  of  the  Governor  disappeared,  and 
though  civil  matters  were  organized  into 
a  separate  department  under  one  of  the 
Commissioners,  all  matters  of  importance 
were  handled  by  the  Chairman,  or  under 
instructions  from  him.  All  the  members 
of  the  Commission  were  required  to  reside 
on  the  Isthmus,  and  each  was  placed  in 
charge  of  a  separate  department.  This 
was  the  first  attempt  to  concentrate  au- 
thority and  to  bring  the  Commissioners 
together  as  a  body  in  close  touch  with  the 
work. 

At  the  same  time  important  changes 
were  made  in  the  organization  of  the  civil 
government  of  the  Zone  by  the  abolition 
of  the  municipalities  and  their  various  of- 
ficials. The  Zone  was  divided  into  four 
parts,  each  constituting  an  administrative 
district.  For  each  district  a  tax  collector 


48  GOVERNMENT  OF 

was  appointed,  the  title  indicating  the 
duties  of  the  office,  and  in  addition  he 
represented  the  former  municipality  in  all 
litigation  affecting  municipal  property 
within  the  district.  The  Circuit  Courts 
were  given  jurisdiction  over  appeals  from 
taxes  levied  by  assessments  and  the  three 
Circuit  Judges  were  required  to  sit  once  a 
year  as  a  board  of  equalization.  The  Mu- 
nicipal Courts  gave  way  to  the  District 
Courts,  and  the  number  was  reduced  to 
four,  conforming  to  the  districts,  but  an 
additional  judge  was  appointed  as  senior 
District  Judge,  who  sat  wherever  required 
of  him,  and  once  a  month  presided  at  a 
conference  of  the  District  Judges  for  the 
discussion  of  matters  of  common  interest 
pertaining  to  their  office.  Public  works 
and  improvements  in  the  several  districts 
were  placed  under  a  Superintendent  of 
Public  Works  appointed  for  the  Zone, 
and  to  him  were  assigned  charge  and  di- 


THE  CANAL  ZONE  49 

rection  of  slaughter  houses  and  markets, 
municipal  engineering  work,  paid  for  from 
Canal  Zone  funds,  and  such  other  duties 
of  a  public  character  relative  to  the  vari- 
ous districts  as  might  develop.  The  enact- 
ment of  ordinances  previously  invested  in 
the  Municipal  Councils  was  assigned  to 
the  Isthmian  Canal  Commission,  but  such 
ordinances  required  the  approval  of  the 
Secretary  of  War  to  become  effective. 

The  change  in  the  organization  made  in 
April,  1907,  did  not  entirely  eliminate 
friction;  the  trouble  was  inherent  in  the 
seven-headed  executive  which  the  organic 
law  imposed.  Efforts  had  been  made  to 
secure  through  Congressional  action  the 
necessary  modification,  but  without  suc- 
cess. President  Roosevelt,  convinced  that 
only  through  one-man  control  could  the 
work  be  handled  satisfactorily,  proposed 
to  concentrate  all  the  authority  in  the 
Chairman  of  the  Commission,  holding  him 


50  GOVERNMENT  OF 

responsible  for  the  conduct  of  affairs,  if 
the  latter  were  willing  to  assume  the  re- 
sponsibility;  and  issued  an  executive 
order  which,  while  not  in  exact  accord 
with  the  law,  secured  the  end  desired. 
After  that  date,  January  8,  1908,  all 
authority  was  vested  in  the  Chairman,  and 
though  the  Commission  continued  in  ex- 
istence, it  exercised  no  executive  author- 
ity, but  confirmed  and  ratified  such  action 
of  the  Chairman  as  might  be  required,  in 
addition  to  providing  municipal  ordi- 
nances. This  arrangement  permitted  the 
subordination  of  everything,  including  the 
Panama  Railroad,  to  the  construction  of 
the  canal,  and  resulted  in  the  establish- 
ment of  an  autocratic  form  of  government 
for  the  Canal  Zone.  Laws  were  changed 
or  new  ones  made  as  conditions  required 
by  no  other  formality  than  an  order  from 
the  President.  Some  have  designated  it  a 
"benevolent  despotism."  Because  the 


THE  CANAL  ZONE  51 

United  States  provided  furnished  quar- 
ters for  its  employees,  with  lights,  fuel 
and  water,  free  of  charge,  and  through  the 
commissaries  supplied  them  with  food- 
stuffs and  clothing,  as  well  as  luxuries  of 
various  kinds,  at  practically  cost  prices, 
the  Socialists  have  pointed  to  it  as  a  so- 
cialistic community.  Beginning  with  a 
government  which  might  be  termed  po- 
litical, it  ended  as  a  government  by  ex- 
ecutive order,  controlled  by  one  man 
answerable  only  to  the  President  of  the 
United  States  through  the  Secretary  of 
War.  Such  an  establishment  was  not  in 
accord  with  the  principles  of  democracy 
and  several  attempts  were  made  in  Con- 
gress to  secure  a  change,  but  without  suc- 
cess. Conditions  were  peculiar,  for  there 
was  but  one  object  in  view — the  construc- 
tion of  the  canal;  had  the  franchise  been 
introduced,  the  whole  structure  would  have 
fallen. 


5*  THE  CANAL  ZONE 

With  the  change  of  the  Administration 
in  Washington,  the  Commission  seemed 
to  take  on  new  life  and  an  attempt  was 
made  to  revive  its  authority,  but  the  effort 
was  not  successful.  While  there  was 
probably  truth  in  the  assertion  made  at 
that  time  that  the  Chairman  had  exceeded 
his  authority  and  usurped  the  prerogatives 
of  the  Commission,  the  end  not  only  justi- 
fied the  means  but  could  have  been  ac- 
complished in  no  other  way. 


II 

When  the  original  legislation  authoriz- 
ing the  President  of  the  United  States  to 
construct  a  canal  was  enacted,  not  only 
was  the  location  of  the  canal  undetermined 
but  the  conditions  that  would  surround  its 
construction  were  unknown.  The  Spooner 
Act  as  first  drawn  left  the  entire  matter 
in  the  hands  of  the  President,  but  the  com- 
mission idea  was  interjected,  and  as  it 
finally  became  a  law  this  form  of  organi- 
zation was  to  continue  until  the  comple- 
tion of  the  canal.  No  provision  was  made, 
however,  for  its  operation  and  mainte- 
nance after  it  should  be  ready  for  the  use 
of  commerce.  As  the  defects  of  the  pre- 
scribed organization  developed,  Congress 
made  attempts  to  correct  them  and  also 
53 


54.  GOVERNMENT  OF 

in  general  terms  to  provide  for  the  future ; 
in  each  instance  the  reorganization  bill 
which  was  passed  by  the  lower  house  of 
each  Congress  was  never  enacted. 

As  the  work  advanced  a  stage  was 
reached  when  commerce  began  to  seek  in- 
formation concerning  the  tolls  and  the 
regulations  that  would  be  prescribed  gov- 
erning the  passage  of  vessels.  Further- 
more, economical  administration  required 
that  a  definite  future  policy  should  be 
outlined  toward  which  to  work,  so  that 
the  then  existing  force  might  be  available 
for  moulding  an  organization  to  meet 
the  needs  of  operation  and  maintenance. 
Consequently,  the  necessity  for  legislation 
to  take  care  of  the  future  of  the  canal  be- 
came apparent,  and  the  committees  of 
both  houses  of  Congress  having  charge  of 
canal  matters  undertook  the  consideration 
of  the  needed  legislation  during  the  winter 
of  1911-12.  The  committees  separately 


THE  CANAL  ZONE  55 

visited  the  Isthmus,  examined  into  the  ex- 
isting conditions,  and  conducted  hearings 
at  which  the  views  of  the  various  canal 
officials  were  ascertained.  In  this  way 
considerable  data  were  procured,  though 
with  many  men  of  many  minds,  diverging 
opinions  were  developed  even  in  the 
essentials. 

The  Zone  was  granted  to  the  United 
States  for  specific  purposes — "the  con- 
struction, maintenance,  operation,  sanita- 
tion and  protection  of  a  canal,"  and  while 
everything  had  been  subordinated  to  the 
first  of  these,  with  the  end  of  the  con- 
struction work  in  sight,  and  the  protection 
of  the  canal  omitted  to  be  dealt  with  sep- 
arately, the  maintenance  and  operation 
became  of  paramount  importance ;  so  that 
the  most  pressing  matter  requiring  deter- 
mination was  the  plan  of  administration 
to  be  adopted  for  these  purposes,  includ- 
ing the  government  of  the  Canal  Zone 


56  GOVERNMENT  OF 

with  its  judicial  system.  The  scheme  of 
administration  was  somewhat  dependent 
upon  the  form  of  government  that  was  to 
be  established,  and,  naturally,  the  region 
that  was  to  be  controlled  or  governed  to- 
gether with  the  population  occupying  it 
was  the  leading  consideration  of  this  part 
of  the  problem. 

The  general  conception  of  Panama  is 
that  it  is  low  and  marshy,  but  this  is  true 
only  for  the  valleys  of  the  lower  Chagres 
and  Rio  Grande  and  their  tributaries.  In 
the  former  case  the  lowlands  extend  for 
a  distance  of  about  thirteen  miles  from 
the  shores  of  Limon  Bay,  where  the  hills 
enclosing  the  valley  converge  and  increase 
in  height  to  the  continental  divide,  where 
they  attain  an  elevation  of  500  to  1,000 
feet  above  sea  level,  while  on  the  Pacific 
side  the  extent  of  lowlands  is  much  less. 
The  hills  are  in  large  measure  detached 
mounds  with  steep  slopes;  the  valleys  are 


THE  CANAL  ZONE  57 

narrow  and  both  are  covered  with  dense 
jungle.  Beyond  the  river  bottoms,  which 
the  artificial  lakes  would  cover  completely, 
there  is  very  little  land  suitable  for  agri- 
cultural purposes,  except  along  the  Pa- 
cific slope,  and  even  here  very  few  of  the 
temperate  zone  foodstuffs  can  be  grown. 

In  the  early  days  complaint  of  food 
supplies  was  the  rule.  Until  adequate 
cold  storage  could  be  supplied  on  shore 
and  in  the  ships  of  the  Panama  Railroad, 
only  canned  goods  and  native  beef  could 
be  furnished.  The  country  could  supply 
nothing  except  cattle,  and  these  only  in 
limited  numbers;  the  natives  were  not 
given  to  tilling  the  soil  beyond  the  extent 
of  supplying  their  own  needs  in  the  form 
of  a  few  bananas  and  yams,  so  that  for 
furnishing  foodstuffs  for  the  negro  labor- 
ers recourse  was  had  to  the  West  India 
Islands  and  adjacent  more  productive 
countries.  Even  from  these  sources  the 


58  GOVERNMENT  OF 

demands  of  the  commissaries  and  hotels 
which  were  established  for  the  benefit  of 
the  employees  could  not  be  met,  and  no 
reliance  could  be  placed  on  them,  conse- 
quently the  large  bulk  of  the  foodstuffs 
had  to  be  shipped  from  the  United  States 
and  European  markets.  Of  course  the 
complaints  were  not  long  in  reaching  the 
ears  of  the  authorities  at  Washington  and 
investigations  were  the  order  of  the  day. 
The  result  was  always  the  same — criticism 
of  existing  conditions  and  recommenda- 
tions that  means  be  taken  to  supply  the 
people  of  the  Zone  with  the  fruit  and 
fresh  vegetables  to  which  they  had  been 
accustomed  at  home.  It  was  difficult  to 
carry  out  the  recommendations  until 
ample  shipping  facilities  equipped  for  the 
transportation  of  such  supplies  were  pro- 
vided, but  every  effort  was  made  to  im- 
prove the  conditions.  An  agriculturist 
was  employed  and  vegetable  gardens 


THE  CANAL  ZONE  59 

started,  seeds  were  procured  and  distri- 
buted among  the  natives,  with  the  hope  of 
getting  them  interested,  an  agricultural 
survey  was  begun,  and  the  matter  was 
brought  to  the  attention  of  Congress 
which  passed  a  law  permitting  the  leasing 
of  lands  for  agricultural  purposes, — all 
with  the  hope  that  something  might  be 
done  toward  securing  a  supply  of  suitable 
vegetables. 

For  the  truck  gardens  the  most  suitable 
lands  in  the  vicinity  of  the  largest  settle- 
ments of  canal  workers  were  selected,  and 
cultivated  for  two  years,  when  they  were 
abandoned.  The  excessive  rains  during 
eight  to  nine  months  of  the  year,  followed 
by  three  or  four  months  of  drought,  gave 
too  much  water  during  the  greater  part 
of  the  year  and  too  little  for  the  rest. 
Ants  and  other  insects  played  havoc  with 
the  crops  that  had  not  rotted.  The  ex- 
pense incurred  was  prohibitive,  and  as 


60  GOVERNMENT  OF 

the  cost  of  the  canal  had  been  fixed  by  the 
bond  issue  and  there  was  a  desire  to  com- 
plete it  within  the  estimates,  agriculture 
had  to  be  abandoned.  The  natives  had 
been  induced  to  plant  the  seeds  distributed 
among  them,  but  even  in  the  rare  cases 
in  which  the  patches  were  looked  after 
the  crops  were  failures  so  far  as  securing 
any  supply  was  concerned.  The  agricul- 
tural survey  was  not  encouraging  except 
in  so  far  as  showing  that  certain  tropical 
fruits  could  be  produced;  and  no  hopes 
were  offered  which  could  be  used  as  an  in- 
ducement to  the  American  farmer  to  take 
up  lands,  for  no  assurance  could  be  given 
that  he  would  be  able  to  make  a  living. 
The  survey  did  show,  however,  that  if 
Congress  would  appropriate  eight  to  ten 
thousand  dollars  per  annum  for  experi- 
mentation in  treatment  of  the  soil,  special 
varieties  of  temperate  zone  vegetables 
might  be  grown  eventually,  but  that  it 


THE  CANAL  ZONE  61 

would  not  be  possible  to  farm  on  the  scale 
and  in  the  way  that  such  operations  were 
carried  on  in  the  United  States.  As  Con- 
gress failed  to  make  any  such  appropria- 
tion no  experiments  were  conducted. 
Plantations  for  rubber,  bananas  and  cocoa 
had  been  started  by  various  companies 
prior  to  American  occupation,  but  were 
not  successful.  Cocoanuts  thrive  along 
the  coast  if  they  can  be  kept  free  from 
blight,  but  not  in  the  interior,  and  lands 
for  this  purpose  are  limited. 

No  one  came  forward  to  take  advantage 
of  the  opportunity  which  the  law  gave  for 
leasing  lands.  The  framers  of  the  bill  did 
not  consider  that  the  United  States  could 
give  title  in  fee  to  any  of  the  lands  of  the 
Zone,  because  should  the  strip  fail  at  any 
time  to  be  used  for  the  specific  purposes 
mentioned  in  the  grant  the  land  must  re- 
vert to  the  Republic  of  Panama;  conse- 
quently the  time  limit  for  the  leases  was 


62  GOVERNMENT  OF 

fixed  at  twenty-five  years.  In  the  second 
place  it  was  not  possible  to  foresee  just 
what  lands  might  be  needed  for  canal  pur- 
poses, so  that  the  leases  were  to  be  made 
with  the  stipulation  that  they  were  termin- 
able at  the  pleasure  of  the  Canal  Zone 
Government  upon  payment  for  the  im- 
provements. Under  the  circumstances, 
therefore,  it  did  not  seem  possible,  at  least 
for  years,  that  a  self-supporting  American 
colony  could  be  established  within  the 
Zone,  so  far  as  agricultural  pursuits  were 
concerned.  Even  eventually,  the  Ameri- 
can could  not  be  assured  actual  ownership 
of  the  land,  though  the  time  limit  of  the 
lease  might  be  extended.  Finally,  the 
wage  scale  on  the  work  promised  better 
financial  results  than  could  be  realized 
from  farming.  The  location  of  the  Zone 
with  respect  to  the  Republic  of  Panama 
made  it  necessary  to  observe  the  same  sys- 
tem of  taxation  and  to  enforce  the  same 


THE  CANAL  ZONE  63 

import  duties  as  within  the  Republic,  or 
there  would  be  constant  friction  and  the 
Republic's  revenues  would  be  depleted. 

There  is  no  timber  of  any  value  within 
the  Zone  nor  have  any  deposits  of  any 
kind  been  discovered  which  would  warrant 
manufacturing  establishments.  What- 
ever business  might  develop  in  the  Zone  in 
connection  with  the  canal  would  be  in  the 
vicinity  of  the  terminal  ports,  and  the 
question  of  making  provision  for  an  urban 
population  was  considered.  So  long  as 
the  Taft  Agreement  continued  in  force 
any  business  that  might  develop  other 
than  in  coal  and  fuel  oil  for  passing  ships 
would  be  subject  to  the  import  duties  of 
the  Republic  of  Panama,  and  until  the 
needs  of  the  canal  were  fully  developed  it 
would  be  difficult  to  determine  just  what 
lands  should  be  set  aside  for  the  purpose. 
Because  of  the  uncertainties,  no  induce- 
ments could  be  offered  and  it  seemed  best 


64  GOVERNMENT  OF 

that  this  matter  be  left  for  the  future  to 
develop  and  solve.  For  one,  I  did  not 
care  to  see  a  population  of  Panamanians 
or  West  Indian  negroes  occupying  the 
land,  for  these  are  non-productive,  thrift- 
less and  indolent.  They  would  congre- 
gate in  small  settlements,  and  the  cost  of 
sanitation  and  government  would  be  in- 
creased materially,  through  police,  water- 
works, sewers,  roads,  fire  protection  and 
schools. 

In  1910  Congress  voted  in  favor  of 
fortifying  the  canal  and,  subsequently,  of 
having  a  garrison  permanently  located 
within  the  Zone.  These  defenses  consist 
of  seacoast  fortifications  for  the  protection 
of  the  entrances  against  naval  attack,  and 
land  defenses  around  the  locks,  the  most 
vulnerable  features  of  the  canal,  against 
any  force  that  might  be  landed  from  an 
attacking  fleet  for  raiding  purposes.  The 
territory  between  the  fortifications  and 


THE  CANAL  ZONE  65 

the  works  they  are  designed  to  protect 
should  not  be  in  the  possession  of  any  but 
Americans.  All  of  the  arguments  seemed 
to  point  to  the  desirability  of  depopulat- 
ing the  Canal  Zone,  thereby  decreasing 
the  cost  of  civil  government  and  sanita- 
tion and  increasing  the  protection  of  the 
canal.  This  was  therefore  advocated. 

In  opposition,  it  was  asserted  that 
Americans  should  be  permitted  to  take  up 
land,  provision  being  made  for  homestead- 
ing  it  as  an  inducement,  so  as  to  grow  such 
fruits  and  vegetables  as  could  be  produced 
by  the  soil,  the  assumption  being  that  they 
would  take  up  land,  live  in  communities 
along  the  line  of  the  canal,  and  have  the 
farms  or  plantations  worked  by  West  In- 
dian negroes;  the  general  idea  amounted 
to  opening  up  the  land  to  "gentlemen 
farmers."  It  was  further  proposed  that  to 
these  communities  be  given  the  usual  form 
of  municipal  or  city  governments  and  to 


66  GOVERNMENT  OF 

the  settlers  the  right  of  franchise.  It  was 
argued  that  such  a  course  would  result  in 
clearing  away  the  jungle  and,  by  making 
the  country  more  open,  assist  in  the  mili- 
tary protection  of  the  canal  and  the  sani- 
tation of  the  Zone.  Again,  by  making  the 
communities  and  settlements  on  the  plan- 
tations responsible  for  their  own  sanita- 
tion there  would  be  no  increase  in  the  cost 
to  the  United  States  and  the  health  condi- 
tions would  be  materially  improved.  By 
such  an  arrangement  a  large  population 
of  negroes  would  be  left  within  the  Zone, 
increasing  the  cost  of  government.  Fur- 
thermore, discontent  would  result,  for  un- 
der the  treaty  of  1903  American  settlers 
would  be  deprived  of  the  benefit  of  the 
commissaries  and  by  reason  of  the  duties 
payable  to  the  Republic  of  Panama  their 
cost  of  living  would  materially  exceed  that 
of  employees  of  the  canal.  With  the 
jungle,  large  bodies  could  not  be  moved 


THE  CANAL  ZONE  67 

with  ease  and  rapidity,  and  though  small 
parties  might  work  their  way  through  to 
the  locks,  they  could  do  no  damage  if  the 
defense  was  alive  to  its  duties.  Generally 
speaking,  the  jungle  would  give  greater 
protection. 

For  eight  years  the  United  States  had 
been  looking  after  the  sanitation  of  the 
cities  of  Colon  and  Panama,  paying  for 
the  cleaning  of  the  streets  and  garbage 
disposal  of  the  former  and  contributing 
$10,000  for  similar  work  in  the  latter,  with 
no  hope  of  being  relieved  of  the  expense; 
it  could  not  be  expected  that  the  American 
communities  would  be  required  to  do  more 
than  had  been  and  probably  would  be  de- 
manded of  the  Panamanians.  Through- 
out the  Zone  privately  claimed  lands  were 
in  the  hands  of  a"  few  who  leased  out  small 
tracts  to  the  natives  of  the  Republic  or  to 
West  Indians,  and  no  attempt  at  sanita- 
tion had  ever  been  made  or  required  in  the 


68  GOVERNMENT  OF 

negro  settlements  that  resulted.  It  could 
not  be  assumed  therefore  that  the  popu- 
lation would  pay  any  more  attention  to 
sanitation  than  it  had  in  the  past,  and  any 
cost  involved,  including  the  cost  of  inspec- 
tion, would  eventually  be  borne  by  the 
United  States  if  such  work  were  under- 
taken. The  argument  that  the  clearing 
which  would  result  by  populating  the 
Zone,  even  assuming  that  the  entire  Zone 
were  freed  from  jungle,  would  remove 
the  breeding  places  of  mosquitoes,  had  but 
little  force  or  merit,  as  during  the  entire 
construction  period  the  clearings  had  been 
confined  to  the  immediate  vicinity  of  the 
settlements  occupied  by  Americans;  little 
work  of  this  kind  had  been  done  around 
the  aggregations  of  native  huts  even  when 
in  proximity  to  American  towns,  and 
nothing  at  all  where  the  natives  and 
others  were  living  in  the  brush.  There  is 
nothing  like  an  object  lesson,  however, 


THE  CANAL  ZONE  69 

and  a  trip  through  the  native  settlements 
adjacent  to  the  towns  of  Empire  and 
Culebra  convinced  the  Congressional  com- 
mittees of  the  desirability  of  ridding  the 
Zone  of  the  filthy  conditions  that  were 
found,  for  while  filth  may  not  be  the  cause 
of  disease,  to  Americans  generally  it  is  not 
pleasant. 

While  everything  had  been  subordi- 
nated to  construction  the  courts  had  been 
unhampered  in  their  actions.  It  is  true 
that  in  some  instances  the  courts  had  been 
requested  to  arrange  their  sessions  so  as  to 
keep  the  men  away  from  their  work  as 
little  as  possible,  and  in  others  where  the 
punishment  did  not  seem  to  fit  the  crime 
administrative  action  was  taken  in  addi- 
tion, but  such  cases  were  rare  and  the  ac- 
tion was  considered  necessary  for  the  good 
of  the  work  or  for  the  benefit  of  the  ma- 
jority. Again  some  few  cases  never  came 
to  trial  for  various  reasons,  generally  be- 


TO  GOVERNMENT  OF 

cause  of  the  hardship  that  would  be  in- 
flicted on  others  who  were  not  implicated, 
or  to  avoid  a  scandal.  In  the  reorganiza- 
tion that  was  under  consideration  an  in- 
dependent judiciary  was  advocated;  a 
change  was  required  in  the  existing  sys- 
tem, for  there  were  too  many  courts  and 
too  many  judges.  It  was  proposed  that 
there  should  be  one  court  of  general  juris- 
diction presided  over  by  a  judge  to  be  ap- 
pointed by  the  President  with  the  advice 
and  consent  of  the  Senate,  and  that  ap- 
peals should  be  authorized  from  this 
court's  rulings  to  some  appellate  court  in 
the  United  States,  preferably  the  Circuit 
Court  of  Appeals  at  New  Orleans,  and  in 
certain  cases,  to  the  Supreme  Court. 

Following  the  laws  in  force  at  the  time 
of  American  occupation,  jury  trials  were 
not  provided,  notwithstanding  the  fact 
that  capital  punishment  could  be  inflicted. 
In  1907  a  British  subject  from  the  West 


THE  CANAL  ZONE  71 

Indies  was  sentenced  to  be  hanged  for 
murder,  the  first  case  of  the  kind  that  had 
arisen.  An  appeal  was  taken  to  the  Su- 
preme Court  of  the  Canal  Zone,  and  the 
principal  defense  of  the  defendant  was 
that  he  had  been  denied  trial  by  a  jury, 
to  which  he  was  entitled  under  the  Consti- 
tution of  the  United  States.  This  the 
court  denied,  sustaining  the  action  of  the 
lower  court,  and  the  question  was  taken 
up  by  the  British  Ambassador  at  Wash- 
ington, with  the  result  that  the  Chief  Jus- 
tice of  the  Supreme  Court  of  the  United 
States  granted  a  writ  of  error.  At  the 
hearings  which  followed  it  was  contended 
on  behalf  of  the  prisoner  that  as  the  Zone 
belonged  to  the  United  States  and  was 
part  of  its  territory  the  Constitution  ex- 
tended over  the  government  and  its  citi- 
zens had  its  protection,  consequently  the 
Federal  Government  could  exercise  no 
power  over  the  personal  liberty  or  prop- 


72  GOVERNMENT  OF 

erty  of  an  individual  beyond  what  the 
Constitution  conferred,  nor  deny  any 
rights  which  the  Constitution  reserved,  in- 
cluding that  of  a  jury  trial.  The  Supreme 
Court  of  the  United  States  dismissed  the 
writ  for  want  of  jurisdiction  and  the  sen- 
tence was  executed. 

As  might  have  been  expected,  the  case 
brought  on  considerable  discussion  con- 
cerning conditions  on  the  Isthmus,  and  the 
President,  by  executive  order,  directed 
that  in  all  criminal  prosecutions  in  the 
Canal  Zone  wherein  the  penalty  of  death 
or  imprisonment  for  life  might  be  inflicted 
the  accused  should  enjoy  the  right  of  trial 
by  an  impartial  jury  of  the  district  in 
which  the  crime  was  committed.  In  a  com- 
munity like  that  on  the  Isthmus  the  diffi- 
culty was  to  secure  an  impartial  jury,  and 
the  result  was  that  even  in  flagrant  cases 
it  was  not  possible  to  convict  an  American. 
A ,  Under  the  new  establishment  it  was  not 


THE  CANAL  ZONE  73 

considered  advisable  to  extend  trial  by 
jury  beyond  the  then  existing  scope.  If 
the  Zone  were  depopulated  the  juries 
would  be  made  up  of  American  employ- 
ees, and  whenever  a  capital  case  came  to 
trial  it  would  necessitate  the  temporary 
removal  of  a  considerable  number  of  men 
from  their  employment  to  the  detriment 
of  the  work.  Experience  had  shown  that 
Americans  were  loath  to  convict  a  fellow- 
citizen  upon  the  testimony  of  non- Ameri- 
cans, and  such  a  condition  was  likely  to 
bring  complaints  from  foreign  countries. 
The  jury  system  is  applicable  to  a  settled, 
established  community  but  not  to  a  lo- 
cality where  the  population  is  constantly 
shifting  as  was  the  case  during  the  con- 
struction period  and  would  be  the  case, 
though  perhaps  to  a  less  extent,  during  the 
operating  period.  By  allowing  appeals  to 
some  court  in  the  United  States  in  all 
felony  cases  the  rights  of  the  individual 


74  GOVERNMENT  OF 

would  be  safeguarded  even  though  jury 
trials  were  not  allowed.  If  the  Zone  were 
not  depopulated  it  might  be  possible  to  se- 
cure a  greater  number  of  Americans  for 
jury  duty,  but  the  other  objection  to  ex- 
tending the  system  would  obtain,  and  so 
far  as  the  natives  were  concerned,  they 
were  not  accorded  such  trials  under  their 
own  Government. 

The  question  of  the  extradition  of  per- 
sons accused  of  crime  had  been  a  rather 
perplexing  one  at  times,  and  it  was 
thought  that  some  provision  should  be 
made  therefor.  It  had  been  held  that  a 
fugitive  from  the  Canal  Zone  to  some  for- 
eign country  could  be  returned  with  the 
assistance  of  the  Department  of  State, 
since  the  Zone  was  under  the  jurisdiction 
of  the  United  States,  and  the  existing  ex- 
tradition treaties  between  the  United 
States  and  foreign  countries  would  take 
care  of  such  cases.  As  between  the  Canal 


THE  CANAL  ZONE  76 

Zone  and  States  of  the  Union  there  was  no 
law  governing  and  consequently  no  legal 
means  of  securing  the  return  of  any  per- 
son accused  of  crime,  though  such  fugi- 
tives could  be  sent  from  the  Canal  Zone 
under  the  executive  order  authorizing  the 
deportation  of  undesirables,  but  this 
would  not  necessarily  result  in  returning 
them  to  the  localities  where  they  were 
wanted. 

At  the  time  of  the  adoption  of  the  lock 
type  of  canal  great  stress  was  laid  by  the 
advocates  of  the  sea  level  plan  on  the  ease 
with  which  the  canal  could  be  crippled  by 
a  ship  ramming  the  gates.  In  the  design 
and  construction  of  the  locks  every  pre- 
caution was  taken  to  reduce  this  danger 
to  a  minimum,  and  arrangements  were 
made  by  which  ships  could  be  towed 
through  the  locks.  Greater  security 
could  be  obtained  if,  in  addition,  the  force 
at  the  locks  could  take  complete  control  of 


76  GOVERNMENT  OF 

vessels  from  the  time  they  reached  the 
locks  until  they  had  been  passed  entirely 
through,  but  in  order  to  do  this  authority 
must  be  had  to  pay  any  damages  that 
might  be  done  to  the  ship  while  such  con- 
trol passed  from  the  ship's  crew  to  the 
lock  force;  legislation  to  this  end  was 
sought. 

When  in  1910  it  was  decided  to  fortify 
the  canal  the  navy  members  of  the  Forti- 
fication Board  expressed  a  desire  for  dry 
docks,  machine  shops,  and  coaling  plants, 
considering  these  facilities  as  necessary 
adjuncts  to  a  proper  defense.  There  was 
no  question  that  these  facilities  would  be 
useful  for  the  canal.  During  the  progress 
of  construction  economies  had  been  ef- 
fected, with  the  result  that  at  the  time  it 
seemed  more  than  probable  that  the  avail- 
able balance  remaining  from  the  estimated 
cost  for  completing  the  work  would  be 
ample  to  provide  a  dry  dock  and  machine 


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THE  CANAL  ZONE  77 

shops,  with  coaling  pockets  at  both  termi- 
nals of  the  canal.  If  but  one  dry  dock 
were  built  the  navy  men  desired  that  it  be 
constructed  on  the  Pacific  side,  as  the  need 
for  one  there  was  more  urgent  than  at  the 
Atlantic  end.  The  navy  also  considered 
that  there  should  be  sufficient  bunker 
space  to  keep  on  hand  for  immediate  use 
200,000  tons  of  coal  on  the  Atlantic  side 
and  100,000  tons  on  the  Pacific  side,  with 
a  possible  increase  over  these  amounts  of 
fifty  per  cent. 

Applications  had  been  received  from 
various  sources  for  concessions  to  establish 
coal  bunkers  on  the  canal  for  the  benefit  of 
shipping,  but  as  the  law  permitted  the 
leasing  of  land  only  for  agricultural  pur- 
poses none  of  the  applications  could  be 
considered.  The  information  at  hand  led 
to  the  conclusion  that  American  coal  in- 
terests had  not  been  able  to  secure  a  foot- 
hold in  any  of  the  South  American  ports, 


78  GOVERNMENT  OF 

and  it  seemed  possible  that  if  coal  were 
supplied  to  shipping  by  private  interests 
a  combination  might  be  made  resulting  in 
a  monopoly  which  would  be  detrimental 
to  the  interests  of  the  canal.  With  the 
large  amount  of  coal  that  would  be  kept 
in  storage  for  the  navy  which  might  not 
be  drawn  on  to  any  great  extent  except  in 
case  of  war  or  threatened  hostilities,  the 
thought  occurred  that  these  piles  could  be 
utilized  for  the  benefit  of  shipping  using 
the  canal,  or  they  could  be  increased  with 
this  object  in  view.  Assuming  that  Con- 
gress would  authorize  the  United  States 
to  go  into  commercial  business,  a  way 
would  be  secured  for  regulating  the  prices 
at  which  coal  would  be  sold  by  other  in- 
terests, and  prevent  the  formation  of  a 
combination  or  trust. 

While  there  was  as  yet  no  authority  for 
the  construction  of  the  dry  dock  and  coal- 
ing stations,  certain  facilities  already  ex- 


THE  CANAL  ZONE  79 

isted  which  if  utilized  would  add  to  the  at- 
tractiveness of  the  Panama  route  for 
commerce,  and  there  was  no  apparent 
reason  why,  as  in  the  case  of  coal,  they 
should  not  be  turned  to  account.  The 
commissaries  of  the  Panama  Railroad  had 
been  constructed  to  furnish  foodstuffs  of 
all  kinds  and  all  varieties  of  wearing  ap- 
parel and  household  furnishings  for  a 
force  of  employees  which  at  the  height  of 
the  work  had  totaled  nearly  50,000  men. 
In  connection  with  its  commissaries,  cold 
storage  and  manufacturing  plants,  includ- 
ing laundry,  ice  and  bakery,  and  a  whole- 
sale warehouse  for  commissary  supplies, 
ample  for  the  needs  of  the  maximum 
working  force,  had  been  erected  by  the 
Panama  Railroad  and  were  in  full  oper- 
ation. As  from  time  to  time  the  necessity 
for  enlarging  these  facilities  had  arisen  the 
capacities  had  been  increased  by  the  ad- 
dition of  another  unit  in  each  instance, 


80  GOVERNMENT  OF 

which  permitted  a  piecemeal  closing  down 
if  necessary  to  suit  the  demands,  thereby 
avoiding  useless  expense  in  keeping  each 
establishment  in  full  operation  as  the  force 
was  reduced.  In  addition,  the  storehouses 
of  the  Commission  contained  all  sorts  of 
construction  supplies  for  all  kinds  of  work 
including  repair  parts  and  fittings  for  the 
fleet  of  dredges  and  tugs  in  the  service. 

The  plants  and  supplies  must  necessar- 
ily be  maintained  and  operated  for  the 
forces  employed  on  the  canal  and  for  the 
troops  stationed  within  the  Zone,  but  not 
to  their  fullest  capacities.  Ships  using  the 
canal  must  travel  long  distances  to  reach 
it  and  would  be  in  need  of  coal  and  other 
supplies.  Shipping  could  not  depend  on 
the  merchants  of  Colon  and  Panama,  and 
some  provision  should  be  made  for  a  re- 
liable source  of  supply,  together  with  some 
assurance  of  reasonable  cost.  Private 
capital  might  be  interested  sufficiently  to 


THE  CANAL  ZONE  81 

undertake  the  erection  and  maintenance 
of  the  necessary  structures  for  the  conduct 
of  such  business,  but  legislation  would  be 
necessary  to  grant  the  concessions,  and 
the  Taft  Agreement  would  require  abro- 
gation before  anything  further  could  be 
done.  With  the  United  States  already  in 
possession  of  the  requisite  facilities,  there 
seemed  no  good  reason  why  the  Govern- 
ment should  not  undertake  the  business 
itself.  Estimates  were  prepared  and  ap- 
propriations asked  to  undertake  the  con- 
struction of  the  dry  dock,  shops,  coaling 
stations,  and  fuel  oil  tanks,  these  to  be 
constructed  as  adjuncts  to  the  canal.  In 
addition,  authority  was  requested  for  the 
sale  of  coal,  fuel  oil,  and  supplies  of  all 
kinds  to  ships  using  the  canal.  It  was  not 
intended  that  the  United  States  should 
create  a  monopoly — private  interests 
should  be  permitted  to  engage  in  similar 
business  when  all  conditions  permitted, 


83  GOVERNMENT  OF 

though  naturally  the  Government  would 
regulate  prices.  It  was  urged  that  such 
a  course  would  invite  traffic,  for  shipping 
interests  would  know  that  they  could  re- 
plenish their  stores  and  bunkers  and  have 
any  repairs  made  at  reasonable  costs. 

A  very  important  question  requiring 
settlement  was  the  organization  to  be  pro- 
vided for  carrying  on  what  remained  of 
the  construction  and  for  the  operation  and 
maintenance  of  the  canal.  In  the  hear- 
ings before  the  Congressional  Committee 
no  less  than  four  different  establishments 
were  proposed:  a  military  government 
over  all;  a  civil  government  in  the  form 
of  an  organized  political  institution;  a 
commission  government;  and,  finally,  the 
vesting  of  complete  control  in  the  Presi- 
dent of  the  United  States  who  would 
exercise  it  through  an  administrator  ap- 
pointed to  have  charge  of  affairs  on  the 
Isthmus. 


THE  CANAL  ZONE  83 

A  relatively  large  force  of  troops  must 
be  assigned  for  duty  in  order  to  protect 
the  canal,  and  if  a  military  government 
were  established,  the  army  officer  placed 
in  charge  of  both  the  troops  and  the  canal 
would  necessarily  have  very  high  rank, 
consequently  the  number  of  men  available 
for  the  purpose  would  be  very  small.  The 
President  might  not  always  find  it  easy 
to  detail  a  man  with  the  qualifications  of 
an  officer  of  high  rank  and  at  the  same 
time  possessing  the  requisite  ability  to  ad- 
minister the  canal.  The  canal  is  a  civil 
achievement,  and  to  maintain  and  operate 
it  successfully  the  person  in  charge  would 
not  necessarily  have  to  have  a  military 
training,  but  that  of  an  engineer.  As  in 
the  United  States  in  time  of  peace,  the 
military  should  be  subordinated  to  the 
civil,  and  everything  on  the  Isthmus 
should  be  considered  an  adjunct  to  the 
canal.  The  commander  of  the  troops 


84  GOVERNMENT  OF 

should  be  free  to  work  out  the  military 
problems  in  anticipation  of  hostilities,  and 
should  not  be  hampered  with  duties  for 
which  he  has  had  no  special  training  and 
has  as  a  rule  no  fitness. 

If  the  policy  of  depopulating  the  Zone 
were  adopted  there  would  remain  only  the 
operatives  of  the  canal  and  its  adjuncts, 
the  Panama  Railroad,  and  the  military 
force.  Of  these,  the  troops  would  be  un- 
der military  control  when  within  their 
camps  or  posts,  and  there  would  be  left 
a  comparatively  small  force  to  be  con- 
trolled, so  that  the  governmental  functions 
of  police,  fire  protection,  post  oflices  and 
schools  would  be  a  mere  bagatelle,  not 
sufficient  to  warrant  the  creation  of  a  sep- 
arate department.  The  inadvisability  of 
introducing  the  franchise  under  such  cir- 
cumstances is  apparent.  If,  however,  the 
population  of  the  Zone  were  to  remain  and 
the  authority  continued  for  the  leasing  of 


THE  CANAL  ZONE  85 

lands,  thereby  inviting  other  settlers,  it 
must  be  remembered  that  we  have,  after 
all  is  said  and  done,  only  a  right  of  way 
for  a  canal ;  its  operation  and  maintenance 
constitute  an  administrative  problem 
which  ought  not  to  be  encumbered  with 
political  problems,  and  certainly  not  be 
subordinated  to  them.  The  theory  that 
we  should  avail  ourselves  of  the  oppor- 
tunity to  impress  upon  the  Central  and 
South  Americans  the  advantages  of  our 
system  of  government  sounds  well,  but 
one  seldom  learns  much  from  those  whose 
customs,  manners,  training  and  thought 
are  diametrically  opposite  and  who  are 
regarded  with  feelings  of  hatred  and 
antagonism.  The  political  government 
which  had  been  established  originally  had 
been  found  too  cumbersome  and  had  been 
abandoned ;  to  re-create  the  municipalities 
or  districts,  each  with  its  separate  Mayor 
and  Council,  would  not  only  be  a  step 


86  GOVERNMENT  OF 

backward  but  would  introduce  an  expense 
which  was  not  warranted. 

The  commission  form  of  administra- 
tion would  result  in  extending  a  law  which 
had  been  found  faulty  and  productive  of 
friction  to  the  detriment  of  the  work.  A 
board,  committee,  or  commission  is  an  ir- 
responsible body  and  usually  conforms 
fully  to  the  definition  of  a  board  extant  in 
the  military  service,  in  that  "it  is  long, 
narrow,  and  wooden."  Either  one  of  the 
number  having  the  strongest  personality 
or  character  will  dominate  the  commission, 
in  which  case  there  results  the  one-man 
control,  otherwise  it  will  be  vacillating  and 
weak.  In  the  case  at  hand  a  commission 
of  three  was  proposed,  each  in  charge  of 
a  department  of  the  work;  the  functions 
of  civil  administration  were  to  have  one 
head,  sanitation  another,  and  engineering 
a  third,  the  latter  to  include  the  operation 
and  maintenance  of  the  canal,  thus  revert- 


THE  CANAL  ZONE  87 

ing  to  the  conditions  that  existed  through 
the  executive  order  of  April  1,  1905. 
Such  a  j  vision  could  no  more  eliminate 
friction  .1  the  future  administration  of  the 
canal  t.*an  it  had  in  the  past,  for  there 
would  be  the  same  overlapping  of  duties 
and  the  same  desire  to  make  each  depart- 
ment the  most  important  one  in  the 
organization. 

The  problem  was  one  of  administration 
just  as  it  had  been  in  the  past,  and  that 
form  should  be  adopted  which  would  result 
in  the  most  efficient  management  of  the 
canal.  The  Spooner  Act  authorized  the 
President  to  construct  the  canal  and  had 
placed  all  the  power  in  his  hands,  limiting 
him  only  in  the  method  of  exercising  it. 
In  the  same  way,  the  President  should  be 
authorized  to  complete,  maintain,  operate, 
sanitate  and  protect  it,  and  the  only  point 
at  issue  was  the  method  by  which  these 
objects  could  best  be  secured.  The 


88  GOVERNMENT  OF 

method  imposed  for  construction  had 
proved  a  failure ;  it  had  been  necessary  to 
evade  the  law  to  secure  satisfactory  re- 
sults, by  concentrating  and  fixing  respon- 
sibility, and  in  the  light  of  past  experience 
the  President  should  be  authorized  to  ex- 
ercise his  authority  through  a  responsible 
head — for  "councils  of  war  never  fight." 

Of  course,  Congress  could  take  charge 
and  legislate  for  the  canal,  but  under  such 
conditions  prompt  action  was  not  possible, 
and  such  a  solution  could  only  cause  de- 
lay and  might  result  in  serious  trouble. 
With  the  method  of  administration  pro- 
posed the  system  of  executive  govern- 
ment fitted  in  admirably,  and  it  should  be 
continued.  The  only  objection  that  could 
be  raised  was  the  great  authority  that  it 
would  give  to  the  President,  but  Congress 
has  already  delegated  very  large  and 
broad  powers  to  territorial  legislators,  and 
in  principle  there  is  no  difference  in  dele- 


THE  CANAL  ZONE  89 

gating  legislative  authority  to  fifty  or  one 
hundred  men  or  to  one  man ;  the  proposi- 
tion is  the  same.  The  problems  would  all 
be  administrative,  and  the  legislation, 
therefore,  would  be  administrative  and 
not  political  in  its  character. 

When  the  Canal  Act  of  1912  was  first 
drafted  it  provided  for  the  continuation 
of  the  Isthmian  Canal  Commission  until 
the  completion  of  construction  work,  at 
which  time  the  President  by  executive 
order  should  announce  the  canal  ready  for 
commerce,  after  which  he  was  authorized 
to  govern  and  operate  it,  or  cause  it  to  be 
governed  and  operated  through  a  Gover- 
nor. It  was  expected  that  the  canal  would 
be  ready  for  commerce  in  advance  of  its 
completion,  and  as  from  the  very  nature 
of  things  construction  work  in  some  form 
or  other  would  be  in  progress  for  some 
time  to  come,  it  would  be  difficult  to  fix 
any  date  for  the  termination  of  the  con- 


00  GOVERNMENT  OF 

struction  period.  Unless  provision  were 
made  for  its  operation  shipping  could  not 
utilize  it  even  though  it  were  ready  for 
such  use.  The  title  of  "Governor"  did  not 
seem  appropriate  for  it  would  tend  to 
give  too  much  prominence  to  civil  affairs 
when  in  reality  the  operation  of  the  canal 
should  be  paramount.  On  the  other  hand 
it  was  feared  that  if  some  other  title  were 
used,  such  as  "Director"  or  "General  Su- 
perintendent," it  might  give  the  President 
the  opportunity  again  to  appoint  for  po- 
litical reasons  some  one  at  the  head  of  a 
department  of  civil  affairs,  and  this  it  was 
considered  desirable  to  avoid.  The  clause 
was  modified  with  respect  to  the  Commis- 
sion, but  not  in  reference  to  the  Governor. 
Opposition  developed  in  the  Senate  com- 
mittee, where  the  commission  form  seemed 
to  have  the  preference,  but  on  the  floor  the 
one-man  control  was  substituted. 

In  the  law  that  was  finally  enacted  ef- 


THE  CANAL  ZONE  91 

fective  August  24,  1912,  known  as  the 
Panama  Canal  Act,  the  President  was 
authorized  to  discontinue  by  executive  or- 
der the  Isthmian  Canal  Commission  when 
in  his  judgment  the  construction  of  the 
canal  had  advanced  sufficiently  to  render  a 
continuance  of  its  services  unnecessary, 
and  thereafter  "to  complete,  govern,  and 
operate  the  Panama  Canal  and  govern  the 
Canal  Zone,  or  cause  them  to  be  com- 
pleted, governed,  and  operated,  through 
a  Governor  of  the  Panama  Canal,  and 
such  other  persons  as  he  may  deem  com- 
petent to  discharge  the  various  duties 
connected  with  the  completion,  care,  main- 
tenance, sanitation,  operation,  govern- 
ment, and  protection  of  the  canal  and 
Canal  Zone."  In  addition,  the  Governor 
is  given  official  control  and  jurisdiction 
over  the  Canal  Zone,  and  is  to  perform  all 
duties  in  connection  with  the  civil  govern- 
ment of  the  Zone,  which  is  to  be  held  and 


92  GOVERNMENT  OF 

governed  as  an  adjunct  to  the  canal.  To 
this  end  "all  existing  laws  of  the  Canal 
Zone  referring  to  the  civil  Governor  or  the 
civil  administration  of  the  Canal  Zone 
shall  be  applicable  to  the  Governor  of  the 
Panama  Canal,  who  shall  perform  all  such 
executive  and  administrative  duties  re- 
quired by  existing  law." 

Notwithstanding  the  opposition,  the 
act  provides  for  the  depopulation  of  the 
Canal  Zone  by  authorizing  the  President 
"to  declare  by  executive  order  that  all 
land  and  land  under  water  within  the 
limits  of  the  Canal  Zone  is  necessary  for 
the  construction,  maintenance,  operation, 
sanitation,  or  protection  of  the  Panama 
Canal,  and  to  extinguish,  by  agreement 
when  advisable,  all  claims  and  titles  of  ad- 
verse claimants  and  occupants."  The  op- 
position came  from  a  misconception  of 
existing  conditions,  and  was  based  on  the 
idea  that  after  spending  so  much  time  and 


THE  CANAL  ZONE  93 

money  in  the  sanitation  of  the  Canal  Zone 
it  should  not  be  allowed  to  return  to 
jungle.  As  a  matter  of  fact,  of  the  fifty 
square  miles  or  more  within  the  limits  of 
the  Zone,  less  than  3,000  acres  were  kept 
clear  for  sanitary  purposes,  the  remainder 
of  the  strip  remaining  in  its  original  state, 
except  where  the  clearing  was  made  for 
construction  work  or  for  huts  put  up  by 
natives. 

While  no  provision  is  made  specifically 
for  the  deportation  of  undesirables,  the 
act  ratifies  and  confirms  as  valid  and 
binding  all  "laws,  orders,  regulations  and 
ordinances  adopted  and  promulgated  in 
the  Canal  Zone  by  order  of  the  Presi- 
dent," so  that  the  deportation  order  is 
continued  in  force.  Furthermore,  the 
Governor  is  given  the  right  "to  make  such 
rules  and  regulations,  subject  to  the  ap- 
proval of  the  President,  touching  the  right 
of  any  person  to  remain  upon  or  pass  over 


94  GOVERNMENT  OF 

any  part  of  the  Canal  Zone,  as  may  be 
necessary,"  and  violation  of  such  rules  is 
made  a  misdemeanor  punishable  by  a  fine 
not  exceeding  five  hundred  dollars  or  by 
imprisonment  not  exceeding  one  year,  or 
both. 

The  judicial  system  established  consists 
of  one  District  Court  for  the  Zone  with 
two  subdivisions,  one  at  Balboa  and  the 
other  at  Cristobal,  presided  over  by  one 
District  Judge  appointed  for  a  term  of 
four  years  by  the  President  with  the  ad- 
vice and  consent  of  the  Senate.  A  jury 
trial  is  given  in  any  criminal  case  or  civil 
case  at  law  on  the  demand  of  either  party. 
The  law  also  provides  for  the  appointment 
of  a  marshal  and  a  District  Attorney  who 
is  also  the  legal  adviser  of  the  Governor  on 
questions  touching  the  operation  of  the 
canal  and  the  administration  of  civil  af- 
fairs; these  officials  are  appointed  by  the 
President  with  the  advice  and  consent  of 


THE  CANAL  ZONE  95 

the  Senate,  for  terms  of  four  years  each. 
The  President  is  to  determine  what  towns 
are  to  exist  in  the  Canal  Zone  and  to  di- 
vide the  Zone  into  subdivisions,  and  in 
each  town  a  Magistrate's  Court  is  to  be  es- 
tablished with  exclusive  original  jurisdic- 
tion of  all  civil  cases  in  which  the  sum 
involved  does  not  exceed  three  hundred 
dollars,  and  all  criminal  cases  in  which  the 
punishment  shall  not  exceed  a  fine  of  one 
hundred  dollars  or  imprisonment  not  ex- 
ceeding thirty  days,  or  both.  The  busi- 
ness of  these  courts  is  conducted  by 
magistrates  and  constables  appointed  by 
the  Governor  for  terms  of  four  years. 

To  give  the  lock  forces  complete  control 
of  the  vessels  during  their  transit  of  the 
locks,  the  law  provides  for  the  adjustment 
by  agreement  and  the  prompt  payment  of 
claims  for  injuries  to  vessels  while  in 
charge  of  the  canal  authorities.  In  case  of 
disagreement  suit  can  be  brought  against 


96  GOVERNMENT  OF 

the  Governor  in  the  courts  of  the  Canal 
Zone. 

The  extradition  of  persons  accused  of 
crime  is  made  in  accordance  with  the  laws 
and  treaties  in  force  in  the  United  States, 
and  all  laws  relating  to  the  rendition  of 
fugitives  from  justice  as  between  the  sev- 
eral States  and  Territories  of  the  United 
States  are  extended  to  and  are  in  force  in 
the  Canal  Zone,  for  which  purpose,  and 
this  purpose  only,  the  Canal  Zone  is  con- 
sidered and  treated  as  territory  of  the 
United  States. 

The  President  is  authorized  to  build  and 
maintain  dry  docks,  shops,  coaling  sta- 
tions, wharves,  and  other  facilities,  for 
providing  coal  and  other  materials  to  ves- 
sels of  the  Government,  and  incidentally 
for  supplying  ships  with  such  necessaries, 
at  reasonable  prices,  as  they  may  require. 

In  case  of  war  in  which  the  United 
States  shall  be  engaged,  or  when  war  is 


THE  CANAL  ZONE  97 

imminent,  the  President  designates  an 
officer  of  the  army  to  assume  control,  and 
his  authority  extends  over  the  operation 
of  the  canal  and  the  government  of  the 
Canal  Zone.  In  short,  martial  law  is  de- 
clared, and  the  Governor  becomes  subject 
to  the  order  and  direction  of  the  military 
commander. 

The  result  of  this  legislation  is  the  cre- 
ation of  an  establishment  the  main  func- 
tion of  which  is  the  operation  and  main- 
tenance of  the  canal,  in  connection  with 
which  is  a  bureau  or  subdivision  of  civil 
affairs  sufficient  for  the  government  of 
the  force  engaged  on  the  work,  and  of 
such  others  as  might  continue  residents  of 
the  Zone  until  the  depopulation  is  effected. 
While  it  still  continues  as  a  government 
by  executive  order  it  differs  from  the  one 
in  effect  during  the  construction  period 
in  that  the  President  is  not  permitted  to 
change  or  in  any  way  modify  the  orders 


98  GOVERNMENT  OF 

already  in  effect,  this  necessitating  action 
by  Congress.  The  system  in  effect  during 
construction  rested  on  the  executive  order 
of  President  Roosevelt,  whereas  the  new 
conditions  are  founded  on  law.  In  the 
application  of  the  law  an  engineer  was  ad- 
vocated for  the  position  of  Governor,  for 
if  the  canal  is  properly  maintained  it  will 
be  relatively  easy  of  operation,  and  for 
proper  maintenance  an  engineer  is  neces- 
sary. When  President  Roosevelt  turned 
the  canal  over  to  the  officers  of  the  Corps 
of  Engineers  he  did  it  for  two  reasons: 
one  was  that  an  army  officer  could  not 
resign,  and  the  other  was  that  continuity 
in  office  would  be  secured.  For  the  same 
reasons  it  was  considered  advisable  that  an 
engineer  officer  of  the  army  be  placed  in 
charge,  with  an  assistant  competent  to  re- 
place him.  To  the  Corps  of  Engineers 
are  entrusted  the  canals  in  the  United 
States  for  construction,  operation  and 


THE  CANAL  ZONE  99 

maintenance,  so  that  they  have  experience, 
and  their  military  duties  fit  them  for  duty 
in  connection  with  the  defense  of  the  canal 
in  time  of  war.  Such  an  appointment  to 
the  position  of  Governor  did  not  deprive 
the  Canal  Zone  of  a  civil  government,  and 
in  no  respect  was  the  form  changed  when 
the  reorganization  was  made  effective  on 
April  1,  1914 ;  it  continued  what  had  been 
in  effect  since  April  1,  1905 — a  govern- 
ment by  executive  order. 


INDEX 

PAGE 

Acts  of  Congress 

June  28,  1902  (Spooner  Act) 6,  7,  8,  u,  12,  87 

April  18,  1904 1 1,  12 

Canal  Act  (first)  1912 89 

Aug.  24,  1912  (Panama  Canal  Act) 91-97 

Agriculture  (see  Panama) 

Balboa 94 

Canal    Zone     (see    Isthmian     Canal    Commission, 

Panama,  etc.)  8-10 

Carroll    2 

Codes,  Civil  and  Penal  41 

Colombia,  Republic  of 5,  7,  8,  10 

Colon,   9,  23,  31 

Colonization 61-64,  84-86 

Construction i,  2,  3,  12 

Costa  Rica  7,  8 

Courts  (see  Judiciary) 

Cristobal  20,  94 

Currency    31 

Customs  Duties 

Under  Isthmian  Canal  Commission 17,  18,  21,  22 

Divisions  of  Customs  and  Revenues  established    23 

Supplies  and  Materials  admitted  free 29,  33 

Reduction  of,  by  Panama  30 

101 


102  INDEX 

Depleted  by  Taft  Agreement 33 

Put  on  foreign  basis  42 

Payable  to  Panama  63 

Davis,   Geo.  W.    (appointed  Governor) 18 

Proclamation  by  19 

Provisional  Agreement  by 20 

Departments  (see  Isth.  Can.  Comm.,  Gov't  Munici- 
palities, etc.) 

Depopulation  of  Zone 65-69,  73-74,  84,  92-93 

Deportation,  Laws  on IS-I7>  93-94 

Districts   47-49 

Education  34,  36-37 

Executive  Orders  (by  President) 

May  9,  1904 12-17 

Fixing  Tariff  21-22 

Above  revoked   29 

April  i,  1905 43-44 

Nov.  17,  1906  44-45 

April,   1907   45-46 

Jan.  8,  1908  50-52 

Extradition,  Laws  on 73-75,  96 

Fortification  of  Zone 64-65,  76-77 

Franchise 31,  42,  51,  84 

French  Company,  The  5 

Government  of  Canal  Zone 

Difficulties  in  way  of 3,  4 

Provisions  for,  under  Isth.  Can.  Comm 12-16 

Executive   branch  organized,   Officials,   Dep'ts, 
etc 34 


INDEX  103 

Becomes  one  of  Executive  Control 44 

Form  of,  after  completion  of  work  53-56 

Four  forms  proposed  82 

Objections  to  first  three 83-87 

Reasons  in  favor  of  fourth  form 87-89,  98 

Executive  Form  established 89-92 

Summary  of  present  form 97-99 

Governor  of  Canal  Zone  (Duties  and  Powers) 18-19 

Office  discontinued  46-47 

Office  restored  89-92 

Hay,  John,  Secretary  of  State 

Interpretation  of  treaty  by  26-27 

Objection  to  above  by  Republic  of  Panama 28 

Hospitals  32 

Isthmian  Canal  Commission 

Appointed   8,   12 

Duties  and  Powers  of   12-16 

Extraordinary  Powers  of I5-I7 

Executive  branch  organized  by   34 

Becomes  Executive  Committee  of  three 43-44 

Chairman  and  Chief  Engineer  combined 46 

Office  of  Governor  discontinued 46-47 

Absorbs  duties  of  Municipal  Council 49 

Chairman  made  supreme 50-52 

Weakness  of  86-89,  91 

Judiciary 

Under  Spooner  Act  (Courts,  officials,  etc.)  n,  38-40 

Codes,  Civil  and  Penal 41 

District  Courts  and  Judges 48-49 


104  INDEX 

Reorganization  of  Courts 69-72 

Jury  Trial  72-74 

Under  Panama  Canal  Act   94-95 

Jury,  Trial  by   72-74 

La  Boca 20 

Lazear    2 

Malaria    2 

Martial  Law 96-97 

Municipal  Council 36-37,  49 

Municipalities 

Officers,  Council,  Duties,  etc 35-37 

Replaced  by  Administrative  Districts    47 

New  Panama  Canal  Co 6-8,  12 

Nicaraugua 5,  7-8 

Officials  (see  Isth.  Can.  Comm.,  Gov't,  Municipali- 
ties, etc.) 

Panama,  Nature  of  country  of 3,  56 

Agricultural  conditions  of  57-6i 

Natural  Wealth  of 63 

Panama,  City  of _ 9,  23,  31 

Panama  Railroad 7,  10,  50 

Panama,  Republic  of 

Treaty  with 9,  10 

Provisional  Agreement  with 20 

Protest  on  Customs,  Ports,  and  Postal  Rates.. 23-25 

Objection  to  Hay's  Interpretation  of  Treaty 28 

Reduction  of  taxes 3® 


INDEX  105 

Postal  Service 25,  30 

President  of  the  United  States 

May  9,  1904,  Letter  establishing  Government.  .11-12 

Customs  Duties  controlled  toy  21 

Establishes  Tariff  Rates    21-22 

Above  revoked    29 

Becomes  Executive  Head  of  Zone 41-42 

Power  of,  under  Panama  Canal  Act 89-92,  95 

Reed    2 

Residence  of  Zone  Officials  44-45,  47 

Ross,  Sir  Ronald a 

Routes,  Canal  6-8 

Sanitation 2,  31,  93 

Secretary  of  War 12 

Spooner  Act  6-8,  11-12,  87 

Supplies  and  Materials 3,  58,  78-82,  96 

Taft,  William  H.,  Secretary  of  War 

Mission  to  Isthmus  28 

Taft  Agreement   29-33 

Advises  reducing  Commission  of  Seven 43 

Taft  Agreement 

Tariff  Order  revoked  29 

Supplies  admitted   free    29,   33 

Reduction  of  rates  by  Panama 30 

Postal  Service  adjusted   30 

Jurisdiction  of  Ports  and  Sanitation  31 

Monetary  System  31 

Franchise   31,  42 

Hospitals   32 


106  INDEX 

Duration  of  Agreement 32-33 

Weakness  of 33,  81 

Taxation  System 13,  17-18,  21,  34,  36-37,  47-48 

Traffic  Measures  75-76,  95 

Treaties,  etc. 

Nov.  18,  1903,  with  Panama 9-10,  20 

Wording  of  above 26 

Provisional  Agreement  with  Panama 20 

Taft   Agreement 29-33 

Yellow  Fever  .  ... .2 


A     000  688  396 


